Car wash franchisor Geowash misled franchisees about how much revenue they could expect to earn per month and acted unconscionably in its charging practices, the court has found.
Café, restaurant and take away food services franchisors, which have faced criticism and litigation for allegedly misleading franchisees, will now face heightened scrutiny from the Australian Competition and Consumer Commission.
A franchisee’s $6.1 million case against Domino’s Pizza accusing the fast food chain of misleading him about the sales he could expect from his two Surfers Paradise stores has been resolved out of court.
National car repair franchise Ultra Tune has been ordered to pay a $2.6 million penalty, with a judge finding the firm had not only breached the Franchising Code and the Australian Consumer Law by misleading a prospective franchisee but also misled the court in its defence of the case brought by the consumer watchdog.
The High Court has shot down a request by the former head of food franchisor Retail Food Group that it relieve him from having to appear before a Parliamentary Committee looking into the Franchise Code of Conduct.
Blockbuster has lost another round in its case against a husband and wife franchisee that sold a store’s assets to a competitor, with a court ruling the company could not sock the pair with the costs of its failed appeal.
OPSM owner Luxottica has agreed to make its franchise system more transparent after an investigation by the consumer watchdog found the eyewear giant’s disclosures weren’t up to scratch.
Foodco Group, the franchisor behind Muffin Break and Jamaica Blue, has called for a revised code of conduct that forces prospective franchisees to obtain legal advice prior to signing a franchise agreement.
The law should be altered to make unfair contract terms illegal, ACCC Chair Rod Sims says, and the regulator plans to use its clout to push for the change.
Power tool seller Husqvarna Australia has entered into a court-enforceable undertaking after admitting it likely misled franchisees when stating that its dealership agreements were not covered by the Franchising Code of Conduct.