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Inquiry submissions for WA franchising law reveal level of opposition

Sarah Stowe

The franchising and business community has overwhelmingly rejected the call for State legislation to govern the Western Australian franchise sector. Following the introduction of a private members bill, an inquiry conducted by the Economics and Industry Committee of the WA Parliament called for submissions and the majority of those oppose the regulations.

With an expected 120 submissions, only a handful show support for the bill introduced by WA backbencher Peter Abetz and there is not a clear battle line of franchisee versus franchisor. Among those backing the proposed regulations are Australia’s largest and best known franchisee business Competitive Foods (with Hungry Jacks and KFC brands), and Jim Penman, founder of the Jim’s Group.

Franchisees and franchisors rejecting the proposals are both local and interstate. Franchisors who have forwarded their views to the committe include Bakers Delight, Cash Converters, McDonalds, Poolwerx, Raine & Horne, Sumo Salad and The Coffee Club.

Also voicing doubts are the Franchise Council of Australia (FCA), a number of legal associations including the Law Council of Australia and the Queensland Law Society, the Federal Government Department of Innovation and Industry, the WA Commerce Department, The WA Small Business Development Corporation, the Asia Pacific Centre for Franchising Excellence, the National Retail Association and the Shopping Centre Council of Australia.

Submissions from both sides focus on the broad intent of the bill as well as the legal details.

What is your favourite franchise brand saying about the bill? Check the submissions here.