The passing of the South Australian Small Business Commissioner Bill has caused a tantrum over at the Franchise Council of Australia while franchisees cheer the final recognition that franchising has been brutally abused by too many franchisors.

The bill itself establishes the role of a small business commissioner, which will assist SMEs in solving disputes. However, the franchise industry is livid over the fact the commissioner will have the ability to change the franchising code of conduct and tailor it to the state's desire.  SmartCompany

In passing this Bill the South Australian Parliament has ensured a positive influence on the success of the franchising sector. The deterrents are there to educate franchisors.

The FAA agrees with this principle and has always had it as our longer term goal.   However, in the absence of any Federal initiatives, any State-based legislation is most welcome.   We have to start somewhere, rather than go on ignoring the distress of many franchisees caught up in a web of unfair practices by some, but not all franchisors.  FAAi [media release attached]

To appreciate the quality of this legislation interested parties must firstly understand that it will work in conjunction with the federal Franchising Code of Conduct.

Following consultation with relevant industry groups, the Minister will have the ability to prescribe mandatory codes of conduct under the Fair Trading Act which could include a statutory duty of good faith as well as other standards of conduct in franchising as well as other sectors such as farming and retail leasing.  Tony Piccolo MP [media release attached]