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Restraint of Trade not Binding

Posted by Elizabeth Gore-Jones on 4 November 2020
Unfair Restraint of Trade struck down The Back In Motion Physiotherapy Franchise Agreements contained a clause preventing an ex-franchisee from competing within 10 kms of any Back In Motion Physiotherapy franchise for 12 months after the franchise agreement came to an end. The ACCC Deputy Chair Mick Keogh said that the effect of the clause was that former franchisees would not be able to operate in many metropolitan areas of Australia because there were so many Back In Motion Physiother...
Posted in: News Franchisee Franchisor  

Bob Jane Corp Failure to Comply with Code

Posted by Elizabeth Gore-Jones on 1 May 2020
The Franchising Code of Conduct requires that a franchisor advise a franchisee in writing at least 6 months before the end of the franchise term whether or not the franchisor intends to renew or extend the franchise agreement. A failure to comply with this clause can attract a maximum financial penalty of $63,000. Bob Jane Corporation failed to notify some of its franchisees in accordance with the above requirements. Bob Jane gave a court enforceable undertaking that it would comply w...
Posted in: News Franchisee Franchisor  

Co-operation between franchisees and franchisors in COVID-19

Posted by Elizabeth Gore-Jones on 27 April 2020
7-Eleven and franchisees authorised to co-operate on store opening times. The ACCC has granted consent to 7-Eleven and its franchisees discussing temporary store closures because of reduced demand as a result of COVID-19 restrictions. The reason consent was required is that 7-Eleven operates some of its own stores and as such is technically a competitor with some of its franchisees. If they had these discussions without seeking ACCC consent that could potentially breach competition laws...
Posted in: Leases Business News Franchisee Franchisor  
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Restraint of Trade not Binding

Nov 04 2020
Unfair Restraint of Trade struck down The Back In Motion Physiotherapy Franchise Agreements contained a clause preventing an ex-franchisee from competing within 10 kms of any Back In Motion Physiotherapy franchise for 12 months after the franc...

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