The ACCC has sought leave to commence proceedings against Geowash Pty Ltd.
These proceedings with allege:
The action will be against the director and national franchising manager of the franchisor also.
The ACCC will allege:
The ACCC investigated the franchisor after receiving complaints from franchisees.
If leave is granted the ACCC has indicated it will be seeking declarations, injunctions, pecuniary penalties, orders for non-party consumer redress, corrective notice orders and costs together with orders disqualifying the director and national franchising manager from managing corporations for 5 years.
1. directors may be personally pursued for infringements;
2. employees may be personally pursued for infringements;
3. franchisors should ensure they are acting within the legal requirements placed upon franchisors;
4. we may soon start to see a body of law in relation to the good faith provisions under the Franchising Code of Conduct
Note: this alert is based on media release number MR 81/17 released by the ACCC today.
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