Underneath the Golden Boy - Robson Hall Faculty of Law

384 Underneath the Golden Boy
franchising sector; advancing the interests of members in Australia and in special
interest markets such as the international franchise community, Franchisor
Advisory Councils, Small Business Forums and property leasing organizations;
continually fostering among customers, governments and the business
community, a broad-based understanding of the economic importance of having
a strong franchising sector in Australia; and designing efficient, identified, valueadded
services to members and assist them to be more effective in franchising. 145
The FCA has incorporated member standards to promote excellence in
franchising. Under these, all FCA members are expected to conduct their
franchising activities professionally and in compliance with Australian law. In
addition, they are expected to comply with agreed minimum standards of
conduct, which include: (i) no member shall imitate a trade mark, trade name,
corporate name, slogan, or other mark of identification of another member of
business in any matter or form that would have the tendency or capacity to
mislead or deceive; (ii) members will become familiar with the content of these
Member Standards and draw them to the attention of clients as appropriate from
time to time; (iii) a member, be they franchisor, vendor franchisee, franchise
broker, or representative of a franchise system should not sell a franchise if at the
time the franchisor or vendor franchisee knew or ought to have known that a
reasonably competent franchisee would be unlikely to be able to successfully
operate the franchise; and (iv) members are to behave professionally and refrain
from illegal, unethical or improper dealings or otherwise act contrary to the
image of franchising or the FCA. 146 The Member Standards also incorporate
provisions pertaining to a franchisor and franchisee as well as to a supplier
member. With regards to franchisees and franchisors, the Standards state the
following:
• A franchisor shall as part of its franchisee recruitment process make
reasonable investigation to assess whether a prospective franchisee
appears to possess the basic skills and resources to adequately perform
and fulfill the needs and requirements of the franchise;
• The franchisor shall have training and support processes as applicable
to the franchise system to help franchisees improve their abilities to
conduct their franchises. Franchisees will endeavor to apply and adapt
all learning to their operation; and
145
Franchise Council of Australia, “The FCA Overview,” online:
.
146
Franchise Council of Australia, “Member Standards,” online:
.