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South Australia Aims to be Safest Place for Franchisees

Celebrate SA

If you are a franchisee in South Australia, you will celebrate a first for Australia. The state has introduced the Small Business Commissioner Bill 2011, which will ensure broad powers to enhance protection of franchisees by stipulating that dealings are conducted fairly and in good faith.

South Australian Minister for Small Business Tom Koutsantonis has tabled the Small Business Commissioner Bill 2011 (pdf). Along with Tony Piccolo MP, Koutsantonis claims South Australia as the safest place for small business entrepreneurs to invest. In a media statement from Tom Koutsantonis MP:

The establishment of a Small Business Commissioner will create a level playing field, it will allow the small guys to stand up for themselves and promote good-faith dealings between all parties. This legislation is the biggest change to the sector in a generation and the feedback I have received already is extremely positive.

For South Australian franchisees the bill will work help fill the gaps in the Australian federal Franchising Code of Conduct.

Tony Piccolo MP has spent much of the last four years pushing for protection of franchisees after initially becoming aware of the plight of one of his constituents, Brad Skuse at The Cheesecake Shop. He then became aware of the deficiencies of the Federal Franchising Code and the miserable performance of the franchising regulator, the Australian Competition and Consumer Commission.

A barrage of attacks by the Franchise Council of Australia followed his efforts.  Tony Piccolo today said:

Mum and Dad business owners work incredibly long hours and often invest all their savings in setting up new businesses only to be brought down by rogue franchisors. The Bill is very fair as it expects all parties to a business to business transaction to act in good faith and not just franchisees. The Bill and subsequent codes will go some way towards correcting the current huge power imbalance between a franchisor and franchisee.

Now Australian franchisees await the West Australian parliament to proceed with its Franchising Bill 2010 to prove once and for all that enough small voices can still reach beyond the financial power of lobby groups.


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About Ray Borradale

Ray Borradale's picture

Public Profile

Over forty years experience in Small Business and more than twenty-five years in franchising operations as a franchisee and employed by three franchisors, mostly in operations.

I have dedicated more than ten years and over 15,000 hours in the pursuit of quality franchising and exposing franchisor abuse of franchisees while advocating for the introduction of franchise relationship Law and the levelling of the dispute processes between bigger business and small business.

Contact: rayborradale@yahoo.com.au

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Franchise Operations