Posted by Elizabeth Gore-Jones
on 21 May 2015
The scenario:
1. a buyer is buying an existing franchised business from an existing franchisee;
2. the franchisor requires ther buyer to enter into a new franchise agreement rather than a transfer or assignment of the existing franchisee's franchise agreement.
The question:
Is the buyer entitled to a seven day cooling off period?
The Law:
The Franchising Code of Conduct is clear that a franchisee has a 7 day cooling off period from the earlier of entering into t...
Posted by Elizabeth Gore-Jones
on 22 February 2015
People are often surprised that a director, employee or anyone involved in a breach of certain provisions of the Competition and Consumer Act 2010 Cth (the "Act") can be liable for those breaches.
It is often mistakenly believed that, as the franchisor is a company, the people working for or on behalf of the company cannot be personally liable.
If a person, amongst other things, has "aided, abetted, counseled or procured a person to contravene" or "ha...
Posted by Elizabeth Gore-Jones
on 20 February 2015
There are no hard set rules defining when conduct is unconscionable.
More often than not, we look to case law to help to determine if certain conduct is unconscionable.
Behaviour held to be unconscionable
In a recent case* brought by the ACCC against a franchisor, its director and one of its employees the Court held that, amongst other things, the following behaviour of the franchisor was unconscionable:
1. failing to pay the franchisee for work it had completed when the cu...
