Research has found franchisees don’t to do their homework before signing up to see whether their business could be terminated “at will”.
The law assumes franchisees do their financial and legal homework when it comes to signing up to a chain, but research shows franchisees are often overconfident and ignorant of the risks.
Franchisors exercise a lot of control over their franchisees, but it's a different story when it comes to store workers.
Breaches of labour standards at 7-Eleven stores, such as underpayment of staff have damaged the brand.
Potential franchisees need to know what they are committing to before they decide to buy a franchise.
lronically, some of the very systems that make franchises attractive appear to have led to labour standards abuses at 7-Eleven.
Revelations of underpaying by 7-Eleven franchises add to evidence that some franchises are prone to abuses. But why?
The 7-Eleven franchise group is facing allegations of underpaying staff.
In the wake of disturbing allegations of exploitation and underpayment of 7-Eleven workers by franchisee owners, what moral obligations does the parent franchisor have?
Franchisors like 7-Eleven cannot hide behind plausible deniability.
Employers that receive industrial relations support from their franchisor are more likely to abide by the law than other employers.
Falling for the halo effect?
Given franchisors often hold all the legal, financial and psychological power, it's little wonder franchisees get burnt.
One pie too many?
Tolstoy’s opening line in Anna Karenina was: “Happy families are all alike; every unhappy family is unhappy in its own way.” The same can be said of most businesses – the recipe for success is simple…
Proposed reforms to franchise rules are meant to make life easier for franchisees, but the changes are a missed opportunity.
The government is moving to introduce a new Franchising Code of Conduct as part of wide ranging reforms to how franchising arrangements are regulated, claiming it will be fairer for small operators and…