Africa-Press – Botswana. Minister of Trade and Entrepreneurship, Mr Tiroeaone Ntsima says Competition and Consumer Authority (CCA) has jurisdiction on the conduct of the franchise when dealing with suppliers, if the supply disagreement discriminates market accessibility of potential suppliers of input material.
Answering a question in Parliament on Tuesday, Mr Ntsima however said this does not provide for dealing with discrimination of franchisees by the franchisor. The minister, who said he was aware of the business arrangement between the Franchisor and the Franchisee called Master Franchise owner, said there was a clear gap in the Competition Act, which the CCA intended to empower during amendment to have jurisdiction over this form of vertical restraint, including other similar forms of agreement like sole distribution agency. He answering a question from Nkange MP, Mr Motlhaleemang Moalosi, who had asked the Minister of Trade and Entrepreneurship if he was aware that some business franchises such as Nandos and Pedros are not accessible to any other people apart from the so-called Master Franchise. Mr Moalosi also asked the minister to further state whether this does not contravene anti-competition laws and if government would consider laws that ban master franchising so that Batswana are not closed out of lucrative businesses for the benefit of a few individuals.
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