McLaughlin wants to toughen laws to protect franchisees

The federal NDP wants tougher laws to protect people who buy franchises, its leader, Audrey McLaughlin, said today in a pre-election speech. “Many people unfortunately have lost their life savings” in franchising, McLaughlin told the Ontario NDP Small Business Committee at a Toronto hotel.

The Toronto Star
June 18, 1993

McLaughlin wants to toughen laws to protect franchisees
Peter Small

AudreyMcLaughlin.jpg

AUDREY McLAUGLIN: "Many people have lost their life savings."

The federal NDP wants tougher laws to protect people who buy franchises, its leader, Audrey McLaughlin, said today in a pre-election speech.

“Many people unfortunately have lost their life savings” in franchising, McLaughlin told the Ontario NDP Small Business Committee at a Toronto hotel.

“I’m very interested in working closely with your organization and other small business groups to develop ways of giving franchisees” legal protections, she said.

“We’ve been receiving many calls and letters about people who are concerned about franchising she later told The Star.

“There doesn’t seem to be a good regulatory system to work with,” she added.

Although much control over franchise regulations is provincial, federal influence could be imposed through he Small Business Act and other laws, she said.

Last month a series of Star articles revealed that franchising giant Pizza Pizza hired Lorn Austin, a convicted con man with a string of bankruptcies in his past, in 1989.

After the Star articles, Ontario opposition critics urged the NDP provincial government to see if a need exists for more disclosure by franchisor in view of the controversy.

McLaughlin’s speech today fleshed out the NDP strategy for small business.

Among the promised, the NDP would scrap the GST in stage launch a national investment fund to give small businesses earlier access to start-up capital and redirect more money to research


Risks: Lorn Austin, Lorne Austin, Lawrence Austin, Convicted fraud artist, Bankruptcies, several, Canada, 19930618 McLauglin wants

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