Franchise Council of Australia calls for continuity in national franchising laws

The Franchise Council of Australia states that stability and uniform national laws should be a major consideration with regard to business needs as the National Government for the next three years is decided, in a new statement released by the franchise advisory body.

The FCA says that franchising, and the small business sector more broadly needs policies designed to stimulate investment and promote growth, not saddle it with more regulation.

Executive Director of the FCA, Steve Wright, says the franchise advisory body will be asking the Greens and Independents to give serious thought to small business issues in their deliberations.

“We need stability – we have just had a long review of franchising rules and the Government implemented what it called sweeping reform on 1 July. We don’t need the regulatory debate reopened. And we certainly do not want different rules applying in different States, as is currently being proposed by Labor in South Australia,” Mr Wright says.

With a proposed new set of state-based franchising rules on the books in South Australia, Mr Wright notes that these proposed changes have drawn strong opposition from leaders in the South Australian and national franchising sector.

A FCA member survey found 95% opposition to the proposed changes and franchisor, franchisee and supplier members of the FCA have petitioned the SA Government against it.

Franchising has been nationally regulated for its entire 30 year history in Australia, Mr Wright says, and to suggest different rules for South Australia is a “back to the future move which harked back to the days when South Australia had a narrow-gauge railway system, at odds with the rest of the country.”

“Obviously this is not good for economic efficiency or business investment in SA.
And this is precisely what our survey found - 84% of respondents told us they believed the proposed rules would detract from the value of franchise systems in SA.”

The national franchise advisory body objected to the South Australian franchising bill when it was first introduced by MP Tony Piccolo in parliament before the last state election.