by Andrew Lind on 29 April, 10

In April 2010, the Federal Court of Australia declared that since 2004 Allphones engaged in misleading and misleading and deceptive conduct, breached the Franchising Code of Conduct and engaged in unconscionable conduct in its dealings with its former and current franchisees.  Amongst other allegations, Allphones made deductions from commission payments meant for franchisees in breach of franchise agreements.

The Court found and ordered that:

  • the franchisees be paid $3 million in damages for money that had been withheld;
  • 3 Allphones executives had been knowingly concerned in unconscionable conduct;
  • a number of injunctions be imposed to prevent similar conduct in the future; and
  • Allphones and its executives pay the Australian Competition and Consumer Commission (ACCC) costs of legal proceedings.

If your franchisor is not meeting its obligations under the franchise agreement, acting inconsistently with the Franchising Code of Conduct or not living up to its promises to you, we suggest you should check the terms of your agreements and raise your concerns accordingly.  Keep communications in writing as much as possible and good diary notes. If issues cannot be resolved in the first instance between you and the franchisor directly, promptly seek assistance from professional advisors or the relevant industry bodies. By taking these steps it could make a significant difference to your prospects of success in resolving dispute.

Our Dispute Resolution & Litigation team at Corney & Lind Lawyers can assist you, whether as franchisee or franchisor, as you navigate legal issues on your franchise journey. Our (dispute resolution  & litigation) lawyers have the in-depth experience and knowledge to guide you through this complex area of law.  If we can be of assistance, we would like to hear from you.

{ 0 comments… add one now }

Leave a Reply

Your email address will not be published. Required fields are marked *



Terms & Conditions

Law Experts content including responses to your questions and comments provides legal information, tips and hints. The content on this site is not legal advice. That’s good, because there’s no risk of getting a bill by making a comment, asking a question or just contacting us.

You agree that any comment or question that you may ask may be published on this site, after editorial review, for the benefit of future readers. Our editors may edit comments in their discretion. For example we will would seek to remove information that would identify you.

The Corney & Lind lawyers (law experts) are of course happy to give legal advice, that’s what they do for a living. However it is only legal advice when you have engaged Corney & Lind Lawyers to provide legal advice for you. Before you do that you want to have an idea of what it might cost and our lawyers are happy to communicate with you about this.

We may change any of these terms and conditions at any time in our discretion by changing them on this page.

You must scroll down the terms & conditions before you can agree.

Previous post:

Next post: