Posted by Elizabeth Gore-Jones
on 30 January 2015
CASE STUDY 2
In a recent matter, our franchisee client was suffering great financial hardship in the operation of its franchised business. It had been suffering this loss for some time and it could not turn the franchised business around to stop the financial haemorrhaging.
The franchisee had for many months been trying to negotiate with the franchisor to have it released from the franchise agreement. However the franchisee owed the franchisor alot of money for ongoing franch...
Posted by Elizabeth Gore-Jones
on 29 January 2015
We were recently involved in a case where a franchisee had left a franchise system believing they had been released from the franchise agreement by the franchisor. This was not the case. The franchisor was pursuing them legally for franchise fees they would have paid to the end of the term of the franchise agreement plus other costs they had incurred.
When the franchisee called us they were understandably upset. They had been to another lawyer who, not being a franchise ...
Posted by Elizabeth Gore-Jones
on 27 January 2015
It has come to our attention that many franchisor's are not aware of the new Franchising Code of Conduct or the requirements upon them to update their disclosure document.
If you are one of these franchisors it is not too late.
In fact you need to take action now to ensure you are complying with your obligations.
a failure to comply with your obligations may lead to a penalty, ACCC audit, ACCC proceedings against you and so on.
You should seek urgent specialist franchis...