With COVID-19 lockdowns now in place across Australia, the
retail sector has taken a hit. The Government has attempted to
mitigate the worst of these effects by introducing the JobKeeper
program. Further, the New South Wales (NSW) and Queensland
governments have also introduced rent relief programs for commercial tenants.
While these initiatives mitigate the devastating effects of
lockdowns on Australian retailers, one of the forgotten sectors of
the retail market is franchisees. So, what happens to franchise
fees and marketing fees during COVID-19? This article explains what
we know so far.
Negotiate With Your Franchisor
The franchise sector is estimated to generate at least $150
billion in annual revenue and is a significant component of
Australia's total retail sector. The Federal Government
recently issued a media release relating to the franchising
sector. It expressed concern that franchisors were still charging
franchisees regular fees despite being unable
