The FCA welcomes WA parliament's findings on Franchising Bill 2010

The Franchise Council of Australia has praised opposition to the introduction of the Franchising Bill 2010 as proposed by backbencher, Peter Abetz, supporting recent findings by the WA parliaments’ Economics and Industry Standing Committee’s.

Committee Chairman, Dr Mike Nahan said the Bill was not a suitable measure because of the significance of proposed amendments and the importance of streamlining legislation nationally to ease the cost and burden for small business.

Fearful of the negative impact on WA and national franchising, FCA Executive Director, Steve Wright said he is pleased and relieved.

“I think we can say the Report is a victory for common sense,” Mr Wright said.

“The FCA is pleased that the Committee found that there were no widespread instances of misconduct in the franchise sector, and that the existing federal regulatory framework was working effectively.

“I would like to emphasise that franchising, especially in Australia, is very much a collaborative activity between franchisors and franchisees and many submissions to the committee noted the likely negative impact on franchisees in terms of increased uncertainty, reduced access to finance and increased costs of dispute resolution.”

“The FCA is also pleased that the Committee agreed with the submissions made by the FCA and others that the 2010 amendments to the Franchising Code and the recent new powers given to the ACCC will address many of the problems cited in previous inquiries.”

The Committee’s comprehensive analysis of ‘good faith’ and conflict resolution was also welcomed by the FCA and concluded that specific amendments to the current Code and the Competition and Consumer Acts was a more suitable response.

Committee Chairman, Dr Mike Nahan said the Bill was not a suitable measure because of the significance of proposed amendments and the importance of streamlining legislation nationally to ease the cost and burden for small business.