Brisbane office (07) 3180 0150
Gold Coast office (07) 5529 8803
Home >  Blog >  Franchisor Cops Court Penalties

Franchisor Cops Court Penalties

Posted by Elizabeth Gore-Jones on 10 January 2018

Amongst other things, the franchisor for the Pastacup franchise system and its director have been ordered to pay the following pecuniary penalties:

1. the franchisor is to pay $100,000; and

2. the franchisor's director is to pay $50,000.

Both the franchisor and its director must pay the legal costs of the ACCC in the amount of $12,000.

These orders were made because the court found that the franchisor and its director should have disclosed that the director was previously a director of 2 companies who had previously been franchisors of the Pastacup franchise system and they had been wound up because of insolvency.

Learnings: Franchisors should disclose all relevant information in disclosure documents to meet their obligations.

 

Author: Elizabeth Gore-Jones
About: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
Connect via: Twitter LinkedIn
Tags: News Franchisor

latest news

Franchise Mediations - helpful or a waste of time?

Feb 20 2020
I am a staunch supporter of mediations in franchise disputes. In a world where litigation can be outside the financial reach of many parties (franchisors and franchisees) mediation gives the parties an opportunity to reach a resolution which h...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Clarence Chambers,
Level 10, 239 George St,
Brisbane QLD 4000

Gold Coast Office Address: Wyndham Corporate Centre
Level 9, 1 Corporate Court
Bundall QLD 4217

Central Post Office Box Address: P.O. Box 428
Oxenford, QLD 4217