Doughnut Time Franchising Pty Ltd

On 5 April 2022, Doughnut Time Franchising Trust Pty Ltd (Doughnut Time), a retail franchise which specialises in the sale of glazed doughnuts lodged an exclusive dealing notification with the ACCC. The notified exclusive dealing conduct is described as follows:

1. Doughnut Time will issue franchises to franchisees, under which each franchisee is entitled to establish and operate one or more retail stores trading under the name “Doughnut Time” and other identifiers (including trademarks) associated with that name.
2. As a condition of granting a franchise, each franchisee must establish and operate one or more physical retail stores or carts meeting certain specifications and standards of presentation and offer a core range of goods and services from those locations. To achieve those outcomes, each franchisee will be contractually obliged to only purchase stock, merchandise, and dough which is necessary for the establishment and day-to-day operation of a franchise store from Doughnut Time, or third party suppliers first approved by Doughnut Time.
3. The third party suppliers from whom each franchisee is obliged to purchase goods or services may change over time and may include associates and related entities of Doughnut Time.

On 18 May 2022, the ACCC decided to take no further action and allow the notification to stand. Further information is contained in a letter sent to Doughnut Time, which is available under the ‘ACCC correspondence’ heading below.