Franchise Council of Australia Questions Value of State Based Legislation

A media release issued today (25 January 2011) questions the value of state based franchising legislation as being “no benefit, all risk.”

In response to proposed Western Australian franchising legislation the Franchise Council of Australia (FCA) in its latest media release has called on the Western Australian Parliament “to abandon unnecessary and potentially damaging franchising legislation that would duplicate national regulation and cost the WA economy”

The FCA has called for:

• The abandonment of state-based legislation and regulation, with the national regulatory approach to be retained;

• A moratorium on further regulatory changes until 2012/13, at which time the impact of the changes announced in mid 2010 could be reviewed;

• An increased focus on education and dispute resolution, including funding for pre-entry franchisee education and early dispute intervention.

FCA Executive Director, Mr Steve Wright said the Council’s members, which include franchisers, franchisees, service providers and suppliers, were concerned that there was no need for such highly interventionist legislation, given the very limited number of issues with contract renewal and the existing national legislative and regulatory frameworks in place. “Research undertaken last year indicates that 95% of member respondents do not support State based legislation,” he said.

More information from the FCA on this issue is available at the FCA's website.

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