1. I am pleased to have this opportunity to make a submission to the South Australian Inquiry into Franchising. 2. My credentials in relation to franchising are well established and are based on research, teaching and consultation to the sector over three decades. I note in particular: ? 100+ articles, papers and presentations on legal, commercial and developmental aspects of franchising ? Inductee to Australian Franchising Hall of Fame ? Honorary President and Visiting Professor of the International Franchise Academy of Beijing Normal University, Zhuhai China ? Architect of the sector’ s national education program (currently the Diploma of Business Franchising) ? Plenary speaker for National Franchise Association Conferences of Australia, New Zealand, China, Malaysia, Germany, US, South Africa, Vietnam ? Founding editor of Franchising Law and Policy Review ? Member of ACCC’s Franchising  Consultative Panel 2000-2007 ? Co-author of Franchising Law and Practice ? Columnist for Australian Franchising Magazine ? Drafter of Vietnam’s Franchising Law (effective 2006)  ? Governor of the FCA’s  Franchise Academy ? Head of the judging panel for the National Franchising Awards 1996-current ? Special counsel to Deacons working with the firm’s franchising division ? Member of the Small Business Development Corporation of NSW 2004-2007 3. Despite my association with UNSW, the FCA and Deacons the opinions I express in written and oral testimony are my own. 4. I should declare my disappointment with the opinion of a member of the Economic and Finance Committee. Mr JR Rau MP that in his “perfect world we would not have franchises at all because I think they are all nonsense” (Hansard 17 October 2007). Franchising may not be perfect but it is the most efficient system yet devised for harnessing the potential of small business. The economy, the business community – both the small companies aspiring to be larger enterprises and the entrepreneurs wishing to enter business – and consumers would be massively disadvantaged without franchising. 5. My overall philosophy in relation to franchising is probably best expressed in my evidence to the federal review of business conduct a decade ago which prefaced its chapter on franchising with my comment that: Good franchising is very good. It is undoubtedly the most efficient, effective distribution system ever invented. It is the greatest invention of Western capitalism since the invention of the corporation. Good franchising is so much better than independent small business operation but bad franchising is so much worse.(Finding a balance: towards fair trading in Australia, AGPS 1997 p83).