When a same-brand franchise could open across the road, says Batehaven Newsagency and Licensed Post Office partner Jenny Scullin, one of the four owners of the business.

On April 1, a five-year moratorium on the sale of lottery products by other types of businesses – which was a condition of the 40-year lease of NSW Lotteries to the Tatts Group in 2010 - will end.

When that happens, Ms Scullin says, Tatts Group wants all outlets to sign a franchise agreement that comes with some unpalatable conditions.

“They demand a shop-fit to suit their new branding that will cost from $20,000 to $35,000,” she said, “and we must use their preferred shopfitters.”

Another concern was that after they paid to comply with the agreement, Tatts Group could offer a franchise to a business across the road.

“All Tatts Group is worried about is foot traffic, and that’s why supermarkets have come into play,” she said.

Of equal concern are proposed changes to how Tatts Group takes its cut.

“Now, they take their money directly from my bank account once a week,” she said.

“Under the new agreement, it will be multiple times.

“The ramifications are, for example, that after a big draw, we may pay out more than we take in, so we will end up making payouts from our own pockets.”

For the newsagency owners, there is something missing from the franchise agreement that could break their business.

“To expect us to spend all that money but not afford us any exclusivity for their product is not a viable commercial franchise agreement,” Ms Scullin said.

“The biggest threat to us is the power of Woolworths and Wesfarmers over the suppliers, because they price us out of the 

market.”