Full Federal Court sets aside franchise agreement for breach of disclosure obligations under the Franchising Code
By Rebecca Bedford and Ben Dodgshun
On 1 May 2014, the Full Court of the Federal Court of Australia handed down its appeal decision in SPAR Licensing Pty Ltd v MIS QLD Pty Ltd  FCAFC 50. In doing so, it set aside a franchise agreement resulting from the franchisor’s breach of the Franchising Code of Conduct.
One of the key issues for determination in the appeal was the extent of a franchisor’s obligation under the code to provide a franchisee with a ‘current disclosure document’. In effect, the Full Federal Court has confirmed that a franchisor has an overriding obligation to ensure that the disclosure document given to a franchisee is current at the time the franchise agreement is entered into, as distinct from it only being current at the time it is given.
This is an important decision for franchisors. It confirms a willingness by the courts to read franchisors’ obligations under the code broadly, and emphasises the code’s purpose of ensuring that franchisees are able to make fully informed decisions prior to entering franchise agreements…
Click on the link below to read the rest of the Minter Ellison briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Minter Ellison
News from The Lawyer
Briefings from Minter Ellison
This briefing sets out some high level issues to consider on a global M&A deal where the target is an Australian company or business or where downstream Australian subsidiaries are involved.
In this article, partner Karen Payne and senior associate Vasuki Sivaloganathan of Minter Ellison outline some important tax-related tasks for your business this year.