Watchdog sets sights on food franchisees

Take away shops, cafes and restaurants that allow Australians to open a franchise are set to be put under a microscope, to check they are telling potential franchisees as much as they should before they buy in.

The Australian Competition and Consumer Commission is targeting the food services industry in its next round of checks aimed at ensuring the nation's franchising code of conduct is being followed.

The watchdog is interested in whether the outlets are properly disclosing information to prospective franchisees, including set up and operating costs, before signing up to open a store.