A recent decision by the Australian Competition and Consumer Commission (ACCC) has served as a timely warning to franchisors to exercise caution to ensure that they are meeting their disclosure requirements under the Franchising Code of Conduct.
The ACCC has announced the first fines (totalling $18,000) for alleged non-compliance with the Franchising Code of Conduct has been paid by Domino's Pizza.
The ACCC issued two infringement notices against the company. The ACCC asserted there were reasonable grounds to believe Domino's Pizza failed to provide its franchisees with a 2015 - 2016 marketing fund financial statement and auditor's report within the prescribed time limits prescribed under the Franchising Code.
The ACCC have stated "[a]s marketing is often a significant expense for franchisees, it's important that franchisors provide timely and accurate information about the marketing fund's activities."
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
