Franchise Move Set For Court Challenge

Adelaide Now:

South Australia has come under fire for its decision to “go it alone” on franchising.

The move has been described as “totally inappropriate” by federal Small Business Minister Nick Sherry.

Senator Sherry told a national franchising convention in Melbourne yesterday that SA’s proposed franchising code would not only increase business costs, but would likely spark a High Court challenge.

“It flies in the face of the significant progress we have made on the seamless national economy,” he said.

“It is an unhealthy development, which I expect will ultimately end up in the courts. The constitutional issues will have to be determined by the courts (High Court).” More.