Calls for fairer franchise agreements to be legislated by the government

A NSW dealer has been elected as head of the Australian Automotive Dealer Association for the first time in two decades.

Sydney dealer Michael Tynan is managing director of the Tynan Motor Group representing 12 different franchises with seven locations situated to the south of Sydney.

He is also a partner in TMI Pacific, the distributor of Mahindra commercial vehicles.

He has been a franchised dealer for 43 years and held state and national franchise roles with various franchises.  He is also currently NSW president for Honda.

For the past seven years he has served on the NRMA Motoring and Services Board as deputy president and is an ardent spokesman for safer roads, driver training and members’ services.  He recently retired as a board member of the Australian Automobile Association.

Tynan devoted 18 years to local government as mayor and councillor of his local area with Sutherland Shire Council where he was awarded an OAM for his service to the community and reforming of the local government method of financial management.

He is a known advocate for fair and just relations between franchisors and franchises (see story next page) while vocal as to dealers sharing a professional business relationship with their franchisor.

“Dealers have a massive investment in the industry (and, in some cases) are expected to provide services and facilities to represent a franchise at enormous personal and family risk,” Tynan says.

“When a franchise doesn’t perform for whatever reason, the dealer is put at serious risk without any comeback on the franchisor.

“Hence the need for both government and franchisor to recognise the need for a strong, just and fair business relationship built of mutual trust and respect.

“It is recognised that both have differing roles to play in the industry, yet both are reliant on each other for survival and success.

“Recognition of the dealers’ concerns and the risk factor have been slow to be recognised and written into franchising legislation,” Tynan says.

“Considering all aspects of vehicle franchising, the industry must jointly continue to lobby the federal government to introduce a separate vehicle code for franchising of motor dealers.

“Reality dictates that there is no justifiable comparison between a McDonalds franchise and a motor dealer franchise. This recognition would be a win–win for both franchisors and franchisee, which the industry deserves.

“My role as president of AADA is to ensure dealers have a clear voice, their business and community efforts are recognised and their contribution to local and regional economics understood,” Tynan concludes.

Source: Autofile