New SA Rules Could Make It Harder To Find Franchise: FCA

StartupSmart:

Prospective franchisees will find it harder to secure franchises in South Australia due to tough new dispute rules set to be introduced by the state government, the franchising industry body has claimed.

Steve Wright, executive director of the Franchise Council of Australia, told StartupSmart that the laws will make it harder to buy into a South Australian franchise, as well as lowering the price for franchisees looking to sell their business.

The South Australian government has proposed new regulations aimed at protecting franchisees. The rules will demand ‘good faith’ and ‘fair dealing’ from franchisors and franchisees, with financial penalties for those who breach this.

The dispute resolution process will also be overhauled with state small business minister Tom Koutsantonis claiming that the proposals will “even the playing field” between franchisors and franchisees. Read on…

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