Call Us Today 07 3087 3493
Home >  Blog >  How to stop a franchisee ruining your reputation

How to stop a franchisee ruining your reputation

Posted on 21 August 2014

In a recent case the Fair Work Ombudsman has found that a Daiso Australia franchisee has underpaid workers on more than one occasion.

This kind of behaviour can tarnish the reputation of a franchise system.  Especially, as in this case, where the franchisee has been required to place an advertisement in the Melbourne Herald Sun newspaper explaining what it has done and promising not to do it again.

The franchise agreement should require the franchisee to, amongst other things, comply with all applicable laws, pay their staff as required by law and not do anything which will damage the reputation of the franchisor.  If the franchise agreement does state this then the franchisor can issue a breach notice to the franchisee.

If the franchisee fails to remedy the breach within a reasonable time allowed by the franchisor then the franchisor may be able to terminate the franchise agreement.

Termination should always be a last resort though and in these circumstances it may be best for all parties if the franhcisee is required to undergo further training (at the cost of the franchisee) in relation to its legal obligations to its employees.

 

Tags: News

latest news

Not all Restraints of Trade are Enforceable

Jun 18 2019
Not all restraints of trade are enforceable. Some matters that may impact the enforceability of a restraint include: 1. in the case of a franchise, did the franchisee operate from the same premises or do the same type of work before ent...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Level 36, Riparian Plaza,
71 Eagle Street, Brisbane,
Queensland, Australia, 4001

Gold Coast Office Address: PO Box 428,
Oxenford,
Queensland, Australia, 4210