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85 Degrees, a coffee shop chain based in Sydney, has been fined $1.44 million for underpayment issues related to its franchisees. This marks the first instance where the Fair Work Ombudsman (FWO) has successfully prosecuted a franchisor under the “responsible franchisor entity” provisions of the Fair Work Act 2009 (Cth). In 2019, eight franchisee-operated outlets of 85C Daily Café were found guilty of underpaying employees. Violations included non-compliance with minimum w...

As is the case every year, franchisors need to update their disclosure document, key facts sheet, and registration on the Franchise Disclosure Register between July 1 and October 31, with a few further weeks to update the Franchise Disclosure Register. Franchisors should start preparing for this period by compiling any information that will reflect changes to the franchise system over the current financial year. As a reprieve, franchisors will not have new laws to incorporate or comply with...