Franchisees joining forces in disputes: Calmer v Michel's Patisserie

The Federal Magistrates Court (the Court) refused to allow two franchisees to join their alleged claims against Michel's Patisserie (Michel's) in a decision handed down on 2 February 2009.

The franchisees had tried to have their proceedings joined on the basis that both franchisees alleged they had a claim against Michel's which involved common questions of law and facts so that they could be handled together saving the franchisee's time and money. Because of the added complexity involved in running the two proceedings together the Court noted that any potential saving of time and expense would be minimal and was not a factor that would convince the Court to allow the proceedings to be joined. Read more...

When can a franchisor refuse to consent to transfer of a franchise?

The Franchising Code of Conduct provides that a franchisor must not unreasonably withhold consent to the transfer of a franchise. It sets out a non-exhaustive list of circumstances in which franchisor's can reasonably withhold their consent to a transfer. Lockhart v Holden is a recent case of the Queensland Supreme Court (the Court) which looked at when it is reasonable for a franchisor to refuse consent to a transfer. Read more...

Buying your competitor

In recent times, there has been much activity in the franchising industry as evidenced by the significant increase in acquisitions and consolidations of franchised systems.

There are many advantages that can flow from expanding your franchise system, by acquiring your competitors or entering into joint ventures, namely, increased power, product development and increased advertising.

When purchasing a franchise system, key issues to consider include due diligence, re-branding, legislative compliance and other associated completion issues. Read more...

Quick grabs

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  • Australian Co-Operative Foods falsely labelled products. Read more...
  • Former jewellery chain operator convicted for false prices. Read more...

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.