Franchisor Failure: An Assessment of the Adequacy of Regulatory Response

368 Pages Posted: 24 Jan 2011

See all articles by Jenny Buchan

Jenny Buchan

UNSW Australia Business School, School of Taxation and Business Law; University of New South Wales

Date Written: August 1, 2010

Abstract

Franchisor failure is one of the most problematic areas of the franchise relationship. It impacts negatively on landlords and other suppliers, but the contracting parties that are currently without legal rights to respond when a franchisor fails, and thus without consumer protection, are its franchisees.

In this thesis I explore the current contractual, regulatory and commercial environment that franchisees inhabit, within the context of franchisor failure. I conclude that ex ante there are opportunities to level the playing field through consumer protection legislation. I also conclude that the task is not one solely for the consumer protection legislation; the problem should also be addressed ex post through the Corporations Act.

Keywords: administration, asymmetry, Australia, bankruptcy, benchmark, best practice regulation, business consumer, consumer protection, contracts, Corporations Act 2001 (Cth), cost benefit, disclaim, disclosure, due diligence, education, executory contract, exploitative contract, fail, franchise agreement

JEL Classification: D21, D23, D40, D61, D78, H32, K12, K22, K39, L10, M55

Suggested Citation

Buchan, Jennifer M., Franchisor Failure: An Assessment of the Adequacy of Regulatory Response (August 1, 2010). Available at SSRN: https://ssrn.com/abstract=1746306 or http://dx.doi.org/10.2139/ssrn.1746306

Jennifer M. Buchan (Contact Author)

UNSW Australia Business School, School of Taxation and Business Law ( email )

Room 2041
QUAD Building
Sydney, New South Wales
Australia
+61293851458 (Phone)

HOME PAGE: http://www.asb.unsw.edu.au/schools/Pages/JennyBuchan.aspx

University of New South Wales ( email )

Level 2, Quadrangle Building
Australian School of Business
Sydney, NSW 2052
Australia
+61 2 93851458 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
159
Abstract Views
1,779
rank
183,865
PlumX Metrics