This association is proudly pro-franchising and completely refutes any suggestion that we are anti-franchisor. FAAI recognizes and applauds the many fine and ethical franchisors operating in the Australian franchise market.

We know that ethical and competent franchisors provide a franchise system that can produce mutually beneficial results for both parties to the franchise agreement.

We also know that by strengthening the disclosure requirements contained in Part 2 of the code that many of the problems associated with the purchase phase of franchises can be avoided or at least lessened.

This association anticipates that a large number of ethical and competent franchisors readily agree that part 2 provisions need to be expanded in order to help filter out the less ethical and competent franchisors who have generally given the franchising industry an odious reputation and which cause increased difficulty in recruiting suitable franchises negatively impacting on the expansion of many great franchising systems.

FAAI has no wish to stifle franchisors in the operation expansion of their franchise systems, but we are able to exemplify enough disasters to this review so that our concerns and submission to this review can be amply justified.

This association accepts that no matter how effective the Code and its disclosure requirement become, that it will always remain impossible to prevent fraud.