Is there a Basis for Equating Franchisees with Employees in Priority Ranking on the Insolvency of Franchisors? Buchan, Jennifer Mary (Jenny) en_US 2021-11-25T16:39:31Z 2021-11-25T16:39:31Z 2006 en_US
dc.description.abstract This paper presents the current Australian courts’ definitions of employee and independent contractor. It highlights where the franchisee fits, being indistinguishable at times from an employee and at other times from an independent contractor. The paper examines the policy behind insolvency legislation in Australia and queries whether it would be appropriate to accord franchisees specific status in the franchisor’s insolvency; like that enjoyed by employees. In most situations, the definition is relatively unimportant. The Franchise Agreement, ancillary contracts and the Trade Practices Act 1974 (Cth) regulate the franchisor/ franchisee relationship. If the franchisor becomes insolvent, the failure of the law to keep pace with the franchise business model is bought into sharp focus. Whereas the employee and the independent contractor have clearly understood rights, enshrined in statute, the franchisee has no specific rights. Unless the franchisee is a creditor of the franchisor, it does not have a right to attend creditors meetings. At its most vulnerable, the franchisee is categorized as an asset or a liability in the insolvent estate. The franchisor – franchisee relationship, however, has many features that make the franchisee more vulnerable than an employer whose employer becomes insolvent. If the franchisor becomes insolvent, the franchisee may loose the value of sunk investments, the right to occupy premises, and may not be able to free itself from onerous contracts that were only entered into because of its position as a franchisee. en_US
dc.language English
dc.language.iso EN en_US
dc.rights CC BY-NC-ND 3.0 en_US
dc.rights.uri en_US
dc.source Legacy MARC en_US
dc.subject.other Law not elsewhere classified (390199) en_US
dc.subject.other franchisee en_US
dc.subject.other franchisor insolvency en_US
dc.subject.other policy en_US
dc.subject.other employee en_US
dc.subject.other bankruptcy en_US
dc.title Is there a Basis for Equating Franchisees with Employees in Priority Ranking on the Insolvency of Franchisors? en_US
dc.type Conference Paper en
dcterms.accessRights open access
dspace.entity.type Publication en_US
unsw.description.notePublic Original inactive link: en_US
unsw.relation.faculty Business
unsw.relation.ispartofconferenceLocation Palm Springs, California, USA en_US
unsw.relation.ispartofconferenceName 20th annual conference of the International Society of Franchising en_US
unsw.relation.originalPublicationAffiliation Buchan, Jennifer Mary (Jenny), Business Law & Taxation, Australian School of Business, UNSW en_US School of Taxation & Business Law *
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