100 year business veteran will leave WA if Abetz bill is passed, Franchise Council of Australia states

Following the recent warning from major WA brand QSR, the Franchise Council of Australia reports that Snap Printing has told the West Australian Government it will have to consider relocating interstate if the proposed Franchising Bill 2010 is made law.

The company says it does not want to be disadvantaged by having to consider additional and unnecessary state based legislation when negotiating agreements with its franchisees, especially given that this legislation will not apply to competitors located outside the state.

Snap Printing is one of WA’s longest standing franchise businesses, and earns WA and Australia important export income through its activities overseas in countries such as China, New Zealand and Ireland.

The new bill has been raised in private members’ business by Liberal MP Peter Abetz, with the support of WA Labor.

It proposes the introduction of a range of draconian measures which far exceed any regulation in place anywhere else in Australia or overseas, and comes after amendments to Federal legislation that only came in to effect in July after a comprehensive review.

FCA Executive Director Steve Wright comments that the latest news further validates the franchise advisory body’s opposition to the bill.

“Mr Abetz may have good intentions, but the WA franchising sector does not want his bill,” he says.

Mr Wright notes that WA MPs have been inundated with emails and letters voicing concern over the proposed bill, which was drafted by University of NSW academic, Associate Professor Frank Zumbo.

It is unusual that an academic from Sydney was responsible for the legislation, Mr Wright says, and to his knowledge Mr Zumbo did not consult with any WA-based brands about the proposed changes.

“Mr Zumbo purports to be an industry expert,” he notes, “but we don’t see him at any FCA industry events and academia is a long way from the real world of franchising. It is not clear who he is representing - himself, UNSW or some other party? I think WA MPs and the WA small business community deserve a few answers.”