Future Profit Claims

Federal Court Ruling Highlights Risks of Unsubstantiated Franchise Forecasts

Federal Court Ruling Highlights Risks of Unsubstantiated Franchise Forecasts

The Federal Court decision in Girchow Enterprises v Ultimate Franchising Group [2023] FCA 420 is a reminder that if you make financial claims about future profits or startup costs without a solid basis, you could be liable for misleading and deceptive conduct under the Australian Consumer Law.