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MP Tony Piccolo from South Australia has canvassed franchising experts in Victoria and New South Wales and he isn’t stopping there.Strong murmurs of discontent with Federal franchising reform now see Queensland and Western Australia also considering state reform.
In an interview on Australia's ABC radio Mr Piccolo explains that his proposed State Law is to compliment federal law when that law fails. He suggested that Mr Emerson, Federal Small Business Minister in refusing to take up recommendations from 2 Inquiries has forced State reform as a ‘national approach in a defacto way’.
Mr Wright from the Franchise Council of Australia maintained that franchising in Australia by independent measures is amongst the lowest disputation levels of anywhere in the world at around 1 to 2% compared to the US at about 8%.
Mr Wright declares that the Australian Bureau of Statistics states that independent small business goes broke in 2 years in 45% of cases and then suggests some sort of relationship between that gem and contract terms at an average of 7 years where he says 98% of franchisees go to another term..
No one has heard of such a figure previously but it sounds good when arguing that there are no systemic problems in franchising.