Franchising

ACCC says Small Businesses just need a level playing field

The Australian Competition and Consumer Commission has taken action over the last six months to ensure small business have a level playing field, as revealed in the 14th edition of the ACCC’s Small Business in Focus report.

“The ACCC is committed to ensuring small businesses receive the protections of the new business-to-business unfair contract terms law, franchising and other industry codes,” ACCC Deputy Chair Dr Michael Schaper said.

Franchising: what you need to know

This is a quick guide to help franchisees and prospective franchisees understand some of their rights and responsibilities under the Franchising Code of Conduct.

Domino’s pays penalty for alleged Franchising Code breach

Domino’s Pizza Enterprises Ltd (Domino’s) is the first company to pay penalties for alleged non-compliance with the Franchising Code of Conduct.

Following the issue of two infringement notices by the ACCC, Domino’s has paid penalties totalling $18,000. The ACCC issued the infringement notices because it believed that Domino’s had failed to comply with the requirement in the Franchising Code of Conduct to provide franchisees with both an annual marketing fund financial statement and an auditor’s report within the time limits prescribed under the Code.

Businesses remove unfair contract terms before new law

The Australian Competition and Consumer Commission’s new report into potentially unfair contract terms details its review of 46 contracts across seven industries, which resulted in a range of businesses making changes to their small business standard form contracts.

The ACCC will begin enforcing the new law this week [Nov 12], when consumer protections against unfair contract terms are extended to include up to 2 million Australian small businesses.

ACCC advises franchising industry to consider its agreements ahead of new unfair contracts law

The Australian Competition and Consumer Commission is warning franchisors about potentially unfair contract terms under a new law offering greater protections to small businesses from 12 November 2016.

Speaking to the legal symposium at the National Franchise Convention in Canberra, ACCC Deputy Chair Dr Michael Schaper outlined the ACCC’s findings following a review that identified a number of problematic terms that appear to be widespread in the franchising industry.

ACCC takes action against Pastacup for alleged breaches of Franchising Code

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against Pastacup’s current franchisor Morild Pty Ltd (Morild) and that company’s former director Mr Stuart Bernstein alleging breaches of the Franchising Code of Conduct.

Mr Bernstein co-founded the Pastacup franchise in 2008 and has managed and been a director of two previous franchisors of the Pastacup franchise system that became insolvent.

Federal Court orders $500,000 penalty for cleaning franchise

The Federal Court has ordered a $500,000 penalty against South East Melbourne Cleaning Pty Ltd (in liquidation) (formerly Coverall Cleaning Concepts South East Melbourne Pty Ltd) (Coverall Melbourne) for contraventions of the Australian Consumer Law (ACL), in proceedings brought by the Australian Competition and Consumer Commission.

Coverall Melbourne was the Victorian franchisor of a national professional cleaning franchise system.