Franchises

Hungry Jack's faces calls for a court injunction preventing the burger chain from proceeding with plans to open restaurants in close proximity to a franchisee's sites on NSW's Central Coast.

A judge has thrown out claims in a $650 million lawsuit by 38 dealers against Mercedes-Benz Australia over its decision to move to a fixed-price agency model, finding the dealers' lawsuit sought to rewrite the terms of their agreement with the car maker on more commercially favourable terms.

A franchisee class action against United Petroleum over the installation of allegedly loss-making Pie Face stores at its franchise sites is fighting two applications for security for costs which it says can’t be met, as funders take little interest in the case.

A judge overseeing the Australian Competition and Consumer Commission’s case alleging auto mechanic Ultra Tune failed to comply with court orders has labelled its managing director Sean Buckley as “one of the more dreadful witnesses” he had seen.

A litigation funder whose cut of a $98 million settlement in franchise class actions against 7-Eleven was slashed in half is challenging a judge's finding that "strong reasons" exist to refuse it a common fund order.

Restaurant chain Fogo Brazilia is facing a class action alleging it misled franchisees about the profitability of its businesses, with business owners also making claims against an employment law practice that drafted the franchise agreements.

The company behind the Ultimate Fighting Championship gym franchise has been ordered to pay $5 million to three franchisees after a judge found it misled them about businesses which were “near valueless” and unlikely to make profit. 

A judge overseeing two 7-Eleven class actions has signed off on $2.25 million in costs incurred by the funder and lawyers in their pitched battle to win approval for the terms of a $98 million settlement, which included deductions of more than $44 million to cover commission and fees.

The costs billed by Nando's Australia's law firm for work on a "straightforward" judgment debtor examination of a franchisee -- totalling almost a fifth of the debt -- have been slashed, with a court finding the costs manifestly excessive.