Franchising News

Court finds that SensaSlim misled franchisees

09 April 2014

The Federal Court has found SensaSlim guilty of misleading and deceptive conduct by deliberately failing to disclose conman Peter Foster's involvement in the business in its Franchise Disclosure Document. Previous Court orders prevented Mr Foster from being knowingly concerned in the... Read More

Bakery franchise agrees to self-audit employee entitlements

23 January 2014

The Breadtop bakery franchise has entered into a Proactive Compliance Deed with the Fair Work Ombudsman. The Fair Work Ombudsman had previously received a small number of complaints from employees who believed that they were being underpaid. Under the Deed, Breadtop committed to ensure its... Read More

Franchisee's failed claim for compensation

29 November 2013

The case of St Leger Investments Pty Ltd v True Blue James Pty Ltd & Anor [2013] FCCA 601 dealt with a Franchisee's claim of compensation in the sum of $268,764.35 plus interest from a Franchisor . Franchisee failed to prove that any of the alleged oral representations were made... Read More

Franchisor failed to provide required training

28 November 2013

The recent franchise case of Dorrian & Anor v Rushlyn Pty Ltd & Anor [2013] FMCA 101 deals with a dispute between a South Australian State Master Franchisee and the Franchisor for the James' Home Services franchise business. Franchisee failed to prove representations were... Read More

Misleading and deceptive conduct by business partners

07 October 2013

In the recent decision of Haijing v Zhan & Ors [2013] VCC 1261 , the plaintiff had invested $120,000 into a "Cake World" business at Elizabeth Street, Melbourne. The Court had to determine whether the plaintiff was entitled to damages against: the first defendant for misleading or... Read More

ACCC reissues proceedings against Harvey Norman franchisees

18 June 2013

The Australian Competition and Consumer Commission has reissued court proceedings against 9 Harvey Norman franchisees that it found to have misrepresented consumer rights earlier in November 2012. Previously in April, the New South Wales Federal Court dismissed 10 of the 11 injunctions that... Read More

Injunctions against Harvey Norman franchisees dismissed

11 April 2013

In November 2012, the Australian Competition and Consumer Commission (ACCC) applied for injunctions against 11 Harvey Norman franchisees after it found they were misleading customers about their rights to claim a refund or replace faulty products. The franchisees faced fines of up to $1.1... Read More

BRW's Fast Franchises in 2013

28 February 2013

The  Business Review Weekly has released their Fast Franchises list for 2013, with the top 3 companies being Laser Clinics Australia, Jetts Fitness and Anytime Fitness. At the top spot, Laser Clinics Australia is a franchise that offers laser hair removal, laser skin treatment and... Read More

Franchising Code of Conduct to be reviewed

07 January 2013

On 4 January 2013, in a media release on the Ministers website for Innovation, Industry, Science Research and Tertiary Education, the Minister for Small Business, Brendan O'Connor announced a review of the operation of the Franchising Code of Conduct. In summary, the review will focus on... Read More

Receivers appointed for Pets Paradise

01 August 2012

The Bank of Melbourne seized control of Pets Paradise and appointed Deloitte as receivers yesterday pursuant to a $11 million outstanding debt. The receivers said company-operated Pets Paradise stores had been struggling for 18 months. This has been made worse by a virus outbreak... Read More

Court found franchisee misled by sales estimates

27 May 2012

A Victorian appeal case has found that franchisees establishing a new Billy Baxter's restaurant at Glenelg were misled by representations as to the sales estimates they could expect in the first year. The Court of Appeal overturned the original decision and awarded the franchisees $1.2... Read More

ACCC to ensure compliance by franchising sector

10 October 2011

While at the National Franchise Convention 2011 hosted by the Franchise Council of Australia, the Australian Competition and Consumer Commission has stated that it will focus on ensuring franchising compliance to improve its standing. ACCC chairman, Rod Sims, acknowledged that while... Read More

Employee underpaid by ex-franchisee

05 September 2011

Shafi Investments Pty Ltd, the former operator of an Ali Baba Kebabs and Wraps franchise has been brought to the Federal Magistrates Court in Melbourne for allegedly underpaying an employee more than $50,000. The Fair Work Ombudsman claims that the shop's former owners Younus Mohammed and... Read More

Allphones fined $45,000

21 July 2011

The mobile phones retailer, Allphones, has been fined $45,000 for violating Court orders previously issued in 2008. The Australian Competition and Consumers Commission (ACCC) took Allphones to the Federal Court three years ago on behalf of the chain's franchisees following... Read More

Angus & Robertson franchises acquired by Collins

12 July 2011

Franchisee-owned Collins Booksellers has acquired a group of Angus & Robertson franchises and flagged more purchases and store openings in the coming months. The number of former A&R franchisees acquired is unknown but it is believed to be in double digits, with... Read More

$450m chicken franchise sale

17 June 2011

Quick Service Restaurant Holdings, the group behind the more than 600 Red Rooster, Oporto and Chicken Treat food chains, has been sold by one private equity firm to another. Archer Capital bought a majority stake in QSR from Quadrant Private Equity for an undisclosed sum, believed to be about... Read More

Allphones in contempt of court

14 April 2011

Mobile phone retailer Allphones has been found in contempt of court in relation to three out of four charges in relation to undertakings made in earlier Federal Court proceedings regarding dealings with its franchisees. The court will hear from Allphones and the ACCC in relation to... Read More

Angus & Robertson and Borders store closures

04 March 2011

Administrators of failed book retail company RedGroup Retail have announced it will shut 38 stores in the next few weeks to stem the losses from the ailing group. The closures will see more than 300 staff lose their jobs. The bulk of the stores to be shut are in Victoria (15 Angus and... Read More

Fast food franchise rescued

07 December 2010

Shortly after the failed Souvlaki Hut fast food franchise was placed into administration, a group of private investors have stepped in to purchase it. The franchise was placed into administration last week, which was attributed by the previous owners as a result of financial challenges and... Read More

A second state parliament to consider laws to protect franchisees

14 October 2010

This month, the South Australian government adopted Labor MP Tony Piccolo's reforms to redress an imbalance between franchisors and franchisees. A private member's bill from Liberal MP Peter Abetz is also expected to be put before the West Australian Parliament this week. The... Read More