Form vs Reality: Where franchisors may be liable for franchisee conduct – lessons from ASIC v Darranda.

Form vs Reality: Where franchisors may be liable for franchisee conduct – lessons from ASIC v Darranda.

The recent Federal Court decision in ASIC v Darranda Pty Ltd [2024] FCA 1015 highlights that where a franchisor designs the systems, documents or marketing used by franchisees, it may be held liable for regulatory breaches in its network, even without direct dealings with consumers.

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