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A franchising joint venture gone wrong: key takeaways from SHRL Ventures Pty Ltd v Pedro-X Pty Ltd

Who does a franchisor deal with when the people invested in a franchise are in dispute? How do you exit a joint venture if there is an irretrievable breakdown of a relationship? What is the effect of documents that refer to obligations in other documents? What conduct amounts to duress and allows you to escape an agreement? The Supreme Court of Queensland handed down its decision in SHRL Ventures Pty Ltd v Pedro-X Pty Ltd [2026] QCA 119 which provides an example of a situation where these questions arise and how a court determined these issues. This article discusses what happened and some of the major takeaways for those who find themselves in similar circumstances. .

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Contempt of Court – Lessons from Ultratune’s $1.5 million fine for contempt

In an previous article discussing the ACCC’s enforcement priorities for 2024-25, we noted that the Australian Competition and Consumer Commission (ACCC) has continued to monitor strict compliance with small business codes of conduct, including the Franchising Code of Conduct (Franchising Code).

 

In particular, the ACCC had pursued UltraTune, for contempt of Court when Ultratune failed to comply with orders made by the court requiring Ultratune to take specific actions. On 28 January 2025, UltraTune’s appeal was dismissed by the Full Federal Court.

 

UltraTune’s story serves as an important reminder to ensure active monitoring of business’ compliance with all the obligations including those imposed on them by the law or court order and those that they might voluntarily agree to undertake.

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