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.”

Author: Trent Taylor

Contacts

Brisbane

Trent Taylor, Partner
T: +61 7 3135 0668
E: trent.taylor@holdingredlich.com

Melbourne

Dan Pearce, Partner
T: +61 3 9321 9840
E: dan.pearce@holdingredlich.com

Sydney

Darren Pereira, Partner
T: +61 2 8083 0487
E: darren.pereira@holdingredlich.com

Disclaimer

The information in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this newsletter is accurate at the date it is received or that it will continue to be accurate in the future. 

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