Franchisees will have more protection with the new Bill, Piccolo says. Image: smallbusinessinsight.com

The South Australian state government's Small Business Commissioner Bill, which was introduced into parliament last week, "will go some way towards correcting the huge power imbalance between a franchisor and franchisee," state Labor member, Tony Piccolo has said.

Piccolo has led a four year national campaign to have the Federal Franchise Code of Conduct reformed, pushing for state-based rather than national legislation as well as fairer and more effective business to business dispute resolution, penalties for breaches of the Franchise Code of Conduct, and the incorporation of 'good faith dealing' in statute law.

Small Business Minister Tom Koutsantonis introduced the Small Business Commissioner Bill into the South Australian state parliament last week, and Piccolo is in strong support, saying the Bill will raise business behaviour standards in franchising.

"Quite simply, South Australia will be the safest place in Australia for small business to set up shop," he 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 provides for the creation of a Small Business Commissioner, as well as a legislative framework for prescribing Mandatory Codes of Conduct under the South Australian Fair Trading Act.

Piccolo said the Bill also provides for civil monetary penalties for breaches of prescribed codes of conduct under the Fair Trading Act as well as infringement notices or on the spot fines.

"The Bill, and subsequent codes will go some way towards correcting the current huge power imbalance between a franchisor and franchisee," he said.

You can read more about Piccolo's push for state-based regulation here.