This one (from the Franchising Inquiry report linked to above) might reduce franchise sales in Aus, with the disclosure of the margins of the $5 pizzas. Best case this would mean that the economics would need to be explained carefully to get the franchise sale over the line (assuming anybody reads those franchisor disclosure documents.
Have to admit I like the idea!
Recommendation 7.1
7.52 The committee recommends that the Franchising Taskforce examine how to
amend the Franchising Code of Conduct to provide that franchisors are required
to include within the disclosure document to franchisees for the two year period
prior to the franchisee entering the franchise:
where the maximum resale price of each item has been below the cost
price of the product purchased by the franchisee including, but not
limited to, the cost of the product inclusive of any fees associated with the
purchase of the product, royalties, other fees and fixed and variable costs
in relation to the purchase and sale of the product have been added; and
the margin between the purchase price paid by the franchisee and the
maximum price or recommended resale price of the top five by volume of
goods and services sold by the franchisee; and
if data is not available for that particular franchise, then data for a
comparable franchise needs to be provided.''
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- Ann: Appendix 4D FY2019
This one (from the Franchising Inquiry report linked to above)...
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