Franchisors under pump from ACCC
As Australian Food News reported last week, Brumby’s Bakery made the mistake of suggesting in its internal newsletter that its members should raise their prices and blame the recently introduced Federal government Carbon Price.
Since then, Brumby’s Bakery has officially apologized, its managing director Deane Priest has resigned, and the company has released a new advertising and social media campaign to re-assert its good reputation.
The Brumby’s Bakery social media campaign appears to have a focus on personalising Brumby’s Bakery franchises and separate the individual staff members from the company’s recent controversy. Print advertising includes the phrase, “Please don’t blame the franchisees at your local Brumby’s store. At the heart of every Brumby’s store are hard-working passionate people running a small business. Please continue to give them your support.”
Coinciding with the Brumby’s Bakery Carbon Price controversy, the Franchise Council of Australia (FCA), , which is the peak body for the $128 billion franchise sector in Australia, and the Australian Competition and Consumer Commission (ACCC) have released further advice and general warnings to franchise operators and potential buyers of franchised businesses.
FCA warns about liability
The FCA has warned its members that they are still liable for illegal price rises, even when the rises are advised from the franchise’s head office.
The FCA also advised that small businesses, including franchisees, should ensure that they are informed about the implications of carbon tax and pricing.
ACCC general advice for franchises or potential buyers of franchised businesses
The ACCC, which is still looking into the Brumby’s Bakery case, has suggested that all franchisees ensure they have access to their own individual legal advice.
The ACCC has now also warned franchisors and potential franchisees to take steps to check and substantiate claims made about potential income of a franchise.
The warning follows a number of recent complaints to the ACCC by franchisees who alleged that they were promised a minimum ‘guaranteed’ income but then derived little or no income from their franchise. Although many of these complaints related to franchisors in the cleaning and home services sector, but a representative from ACCC told Australian Food News that the warning also applies to the food industry.
The ACCC has been promoting a free online education program, run by Griffith University, to help prospective franchisees make more informed decisions about acquiring a franchise. See here.
Australians are buying less cheese says Roy Morgan Research.
Woolworths has announced that SPC Ardmona (SPC) has signed a three-year contract to supply an increa...
Things are changing at the top of Aussie Farmers Direct.
Coca-Cola has launched a new sugar-free version of Coke set to replace Coke Zero.
The Retail Food Group has just missed its revised forecasted net profit for its 2017 financial year.
Consumer desire to physically see and choose groceries remains a major barrier to the uptake of onli...
The Australian Food and Grocery Council has called for targeted investment allowances for Australian...
A survey by the Grains & Legumes Nutrition Council of over 1,200 found that legume consumption is on...