The Federal Court of Australia’s judgment in ASIC v Retail Employees Superannuation Pty Ltd highlights that if a corporation honestly relies on advice from their lawyers that may provide reasonable grounds to defend the making of a representation that concerns the present state of affairs.

The Federal Court found that representations made by Retail Employees Superannuation Pty Ltd (REST) regarding their rules and practice were opinions expressed as to the law based on reasonable grounds due to reliance on advice received from their lawyers and other trusted sources. Therefore, the representations made could not amount to misleading or deceptive conduct.

On 1 August 2024, the Magistrates Court of Queensland found Peak Physique Franchisor Group Pty Ltd (Peak Physique) engaged in misleading and deceptive conduct and was in breach of section 18 Australian Consumer Law through its conduct which induced the purchase of one of their premises through representations of ongoing support to the franchisee and the profitability of the franchise purchased.

Collective bargaining presents on its face an attractive option for franchisees. By joining forces and splitting negotiating costs, franchisees may be able to use collective power to strengthen their bargaining position and negotiate more favourable outcomes with their franchisor.

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.

The Government has released its response to the Franchising Independent Review agreeing to the majority of the recommendations. This article identifies some key changes to be made, the timing for these and explores what this may mean for franchises.

The ACCC has announced its enforcement and compliance priorities for 2024-2025. This article explores what this may mean for franchises.

This update replicates a legal update provided to the Franchise Council of Australia’s February breakfast at Kooyong Lawn Tennis Club.

The concept of goodwill in a legal context is different to the concept of goodwill when it is used is an accounting context.