ACCC becomes a real franchise regulator

The Franchisor, South East Melbourne Cleaning Pty Ltd was fined last week $500,000 for breaching the Australian Consumer Law and Franchising Code of Conduct.

The Federal Court found that representations as to income by the franchisor was false and misleading and the franchisor failed to notify one franchise that it ought to obtain independent advice as required under the Franchising Code.  The advice sort should have been from an accountant and franchise lawyer at the very least.

This decision will ensure that franchise businesses will adhere to the franchising code.

Read more about the franchising code and resolving disputes on our Franchise Agreements page.

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