A group of Pizza Hut franchisees have launched a class action against the franchisor's discounted pricing strategy introduced by the franchisor to compete with competitors. The franchisees claim they are being financially disadvantaged because of the pricing strategy and reports are they are seeking damages to cover the profits they have lost since the discounted price strategy was introduced. The discontent between the parties shows how the interests of franchisees and franchi...

In a recent case the Fair Work Ombudsman has found that a Daiso Australia franchisee has underpaid workers on more than one occasion. This kind of behaviour can tarnish the reputation of a franchise system.  Especially, as in this case, where the franchisee has been required to place an advertisement in the Melbourne Herald Sun newspaper explaining what it has done and promising not to do it again. The franchise agreement should require the franchisee to, amongst other things,...

This blog considers the case of Civic Video Pty Limited v Yogies Pty Limited [2011] NSWSC 1107 (29 September, 2011). The Franchisee claimed that Civic Video acted unconscionably because the terms of the new franchise agreement were less advantageous to the Franchise than the old agreement. The court held there was nothing unconscionable in the way the new agreement became binding on the Franchisee.  The Franchise was not put under pressure to agree to the new terms of the new ...