SA Franchise Sector Voices concerns about SBC Bill

Prominent SA franchises have voiced their united concern on the SA Government’s Small Business Commissioner (SBC) Bill 2011, which they believe it should be rejected or referred to a committee for a proper and thorough assessment. These prominent franchising brands include voices from VIP Home Services, Gametraders and Group& Franchising.

Mark Langford, franchisor of Gametraders and South Australian State President of the Franchise Council of Australia (FCA), says the SBC Bill would more likely stop him from developing further businesses in the South Australia.

“As a franchisor based in South Australia I would most probably halt any further expansion if this bill were to proceed in its current form, which includes, as far as I am concerned, de-facto state-based franchising legislation,” says Langford.

“I have no problem with a small business commissioner based on the successful Victorian model but we do not need state-based franchising legislation in South Australia when we already have federal legislation under the Competition and Consumer Act - Franchising Code of Conduct.”

“The Labor party needs to understand that the Small Business Commissioner Bill 2011 in its present form is a detriment to franchising. I am very concerned that many interstate and SA-based franchisors will cease to expand in South Australia due to the risk factor of a commissioner who will have extraordinary powers which could place an entire franchise system including their franchisees at risk.”

Founder of VIP Home Services, Bill Vis, believes the current form of the SBC bill would make him reconsider using South Australia has a base for Head Office.

“I believe there needs to be federal laws around franchising and not local ones as it makes it too awkward as you have different rules in different places. We would have to strongly consider moving our head office to another state should this bill proceed in its current form,” says Vis.

Paul Wheeler, from Group7 Franchising, has also mentioned his disappointment that the South Australian government had already altered the original bill without further public consultation.

“What was originally put out for comment is vastly different to what we now see before Parliament. This should definitely be put back out to the community for their opinion before any vote is conducted in the Upper House. At the very least it should be debated by Committee,” says Wheeler.

Steve Wright, FCA Executive Director, says he looks forwards to the SBC Bill 2011 being debated further in order for amendments to be made so that the Bill was more aligned with the Victorian Small Business Commissioner model.