Conditions for effective disclosure in the regulation of franchising

Journal article


Crawford-Spencer, Elizabeth. (2008). Conditions for effective disclosure in the regulation of franchising. International Review of Applied Economics. 22(4), pp. 509 - 525. https://doi.org/10.1080/02692170802138289
AuthorsCrawford-Spencer, Elizabeth
Abstract

This paper outlines the use of disclosure in the regulation of the franchise sector in Australia, demonstrating that it does not meet conditions considered necessary for effective informational regulation. First, there is not enough reliable information to gauge the risks in informing the design of regulatory process and the choice of tools; second, the information in the disclosure document is not uniformly reliable, accessible and useable; and, third, a franchisee’s ability to act on the information is limited because the franchise contract is not subject to negotiation and there are limited alternatives in the market. As potential solutions, this paper proposes that increased cooperation among and fuller representation of stakeholders, better information from dispute resolution processes, and registration of disclosure would improve the level of information about the sector generally. To ensure reliable, accessible and useable information, the information that is required to be disclosed should be identified by all stakeholders, with assurance that it is provided in an accessible, useable way. Finally, educational initiatives are needed to enhance franchisees’ ability to act on the information. This paper also briefly surveys some other regulatory tools used in the regulation of franchising, but urges that these tools be selected as part of a democratic and participative regulatory process that accurately represents the interests of all stakeholders.

Keywordsfranchising; regulation of franchising; regulatory theory; regulatory process; regulatory tools; standard form contract; relational contract; informational regulation; disclosure; consumer law; consumer protection
Year2008
JournalInternational Review of Applied Economics
Journal citation22 (4), pp. 509 - 525
PublisherRoutledge
ISSN0269-2171
Digital Object Identifier (DOI)https://doi.org/10.1080/02692170802138289
Scopus EID2-s2.0-46249099605
Page range509 - 525
Research GroupThomas More Law School
Place of publicationUnited Kingdom
Permalink -

https://acuresearchbank.acu.edu.au/item/8q88w/conditions-for-effective-disclosure-in-the-regulation-of-franchising

  • 55
    total views
  • 0
    total downloads
  • 0
    views this month
  • 0
    downloads this month
These values are for the period from 19th October 2020, when this repository was created.

Export as

Related outputs

Models of franchising for social enterprise
Crawford-Spencer, Elizabeth and Cantatore, Francina. (2016). Models of franchising for social enterprise. Journal of Marketing Channels. 23, pp. 47 - 59. https://doi.org/10.1080/1046669X.2016.1147891
Yours, mine, and ours: The development, management and protection of intellectual property in third-sector enterprise
Crawford-Spencer, Elizabeth and Cantatore, Francina. (2014). Yours, mine, and ours: The development, management and protection of intellectual property in third-sector enterprise. Intellectual Property Quarterly. https://doi.org/10.5072/54/589aaf561995c
The applicability of unfair contract terms legislation to franchise contracts
Crawford-Spencer, Elizabeth. (2013). The applicability of unfair contract terms legislation to franchise contracts. University of Western Australia Law Review. 37(1), pp. 156 - 175.
An exploration of the legal meaning of franchising
Crawford-Spencer, Elizabeth. (2013). An exploration of the legal meaning of franchising. Journal of Marketing Channels: Distribution systems, strategy and managment. 20(1), pp. 25 - 51. https://doi.org/10.1080/1046669X.2013.747858
How a duck walks: an exploration of the legal meaning of franchising
Crawford-Spencer, Elizabeth. (2012). How a duck walks: an exploration of the legal meaning of franchising. 26th Annual International Society of Franchising Conference. Australia: Bond University Press. pp. 1 - 29
The regulation of franchising in the new global economy
Crawford-Spencer, Elizabeth. (2010). The regulation of franchising in the new global economy Edward Elgar Publishing Limited.
All for One and One for All: A Survey of Franchise Trade Associations' Roles in the Governance of the Franchise Relationship
Crawford-Spencer, Elizabeth. (2009). All for One and One for All: A Survey of Franchise Trade Associations' Roles in the Governance of the Franchise Relationship. Australia: Bond University Press. pp. 1 - 47
Consequences of the interaction of standard form and relational contracting in franchising
Crawford-Spencer, Elizabeth. (2009). Consequences of the interaction of standard form and relational contracting in franchising. Franchise Law Journal.
Reconceiving the regulation of the franchise sector
Crawford-Spencer, Elizabeth. (2008). Reconceiving the regulation of the franchise sector. Macquarie Law Journal. 8, pp. 103 - 123.
Effective Disclosure in the REgulation of Franchising
Crawford-Spencer, Elizabeth. (2008). Effective Disclosure in the REgulation of Franchising. Australia: Bond University Press. pp. 1 - 29