Company or individual details
- Bob Jane Corporation Pty Ltd005 870 431
The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Bob Jane Corporation Pty Ltd (Bob Jane) in relation to concerns that it failed to comply with its obligations under the Franchising Code of Conduct (the Code) relating to end of term and renewal of agreements.
Bob Jane, trading as Bob Jane T-Marts, operates a national network of 86 franchised stores and 49 company-owned tyre retail stores supplying tyres for a wide range of vehicles, and providing tyre and car maintenance-related services.
The ACCC was concerned that Bob Jane failed to comply with its obligations under the Code. In particular:
- it did not notify some franchisees of whether it intended to renew or extend their franchise agreements at least six months before the expiry of the agreements, as required by clause 18 of the Code, and
- it extended the term of certain franchise agreements without first providing required documentation to the franchisees and obtaining a written statement from the franchisees that they had received, read and had an opportunity to understand certain documentation, as required by clauses 9 and 10 of the Code.
Bob Jane has acknowledged that its conduct was likely to have contravened the Code and section 51ACB of the Competition and Consumer Act 2010.
To address the ACCC’s concerns, Bob Jane provided the ACCC with a section 87B undertaking in which it undertakes to:
- not terminate any franchise agreements currently operating under interim arrangements without first providing 6 months’ written notice to the franchisees,
- give franchisees six months’ written notice of its intention whether to renew or extend their franchise agreement,
- provide the prescribed documentation (new agreement, disclosure document and copy of the Code) at least 14 days before the renewal or extension of an agreement,
- obtain written notice from franchisees that they have received, read and had a reasonable opportunity to understand the disclosure document and the Code before entering into, renewing, transferring, or extending the term or scope of agreements, and
- implement and maintain a compliance program for a period of three years.