Latest ACCC report shows change in number of franchise complaints

The Australian Competition and Consumer Commission has fielded fewer enquiries and complaints from franchisees and franchisors since January 2016 than it did in the six months to December 2015.

The latest Small business in focus report reveals only 236 complaints and 124 enquiries in the franchising sector were received by the ACCC in comparison to 411 complaints and 160 enquiries in the previous period.

So what’s changed?

Misleading conduct and false representations still topped the list of issues with 58 complaints so far this year, but there were fewer complaints (down from 62).

There’s a big drop in the number of complaints about unconscionable conduct from 35 in the latter half of 2015 to 20 between January and July 2016.

However, specific Franchising Code related issues are on the increase: 44 (up four) for disclosure, and 15 (up six) regarding termination of agreement.