Despite industry reports that franchising booms in tough economic times, the current deteriorating economic climate has seen the collapse of a number of well known franchise groups. The Queensland based kitchen and laundry appliance franchisor, Kleenmaid was placed into administration in early April 2009. This is hot on the heels of other franchisor collapses.
Last year the franchising industry faced government reviews federally and in WA and SA. One of the recommendations was to insert a clause into the Code requiring franchisors, franchisees and prospective franchisees to act in good faith.