Prominent Franchisees Reject SA Small Business Commissioner Bill Agenda

A group of five prominent franchisees have rejected the South Australia Small Business Commissioner Bill’s agenda during a South Australia Business Conference.

The franchisees have found the new franchising laws, which are being moved by Small Business Minister Tom Koutsantonis, both unnecessary and unwanted in the State.

The prominent franchisees were owners from successful franchising brands, which were Cartridge World, McDonalds, Mortgage Choice, Bakers Delight and Safetyquip.

The five owners participated in a panel discussion session about franchisee success, in which each said they were against the State-based franchising laws while noting that franchising had always been a nationally regulated business segment.

According to the Small Business Minister, the new Small Business Commissioner would hold the power to investigate complaints and levy $50,000 fines for rule breaches. The Commissioner would also investigate franchising, tenancy and other complaints.

“There are enough rules already; we don’t need to make it any harder,” says Kurt Muller of Cartridge World. Muller stated that the different rules in SA would make it harder to do business in the state.

Both Peter Bonnici, of Baker’s Delight, and Tim Lewis, of Safetyquip, had positive experiences from franchising and did not believe new rules were needed.

Alan Robson, McDonald’s franchisee, said he felt sorry for brand owners operating interstate or internationally if they had to content with different rules and regulations in different places.
Franchise Council of Australia Executive Director, Steve Wright, found it a shame that the South Australian Government appeared intent on pushing the franchising legislation.

“The Commonwealth and other States have considered and rejected the very moves Mr Koutsantonis intends to implement,” Mr Wright said. “The narrow-gauge railway may have made sense to some inside South Australia, but it was a huge impediment to State economic growth. At a time when State laws are being harmonized, this is a major step into the past,” says Wright.

“SA already trails the rest of the nation in terms of business confidence. This can only make a bad situation worse.”