Posted by Elizabeth Gore-Jones
on 6 October 2022
The ACCC issued Jims Group Pty Ltd with two infringement notices for alleged contraventions of the Franchising Code of Conduct.
The Franchisor has paid $24,420 in penalties.
The ACCC have today issued a media release relating to these infringements.
As a reminder of your obligations especially during our current disclosure update period you should be aware that the following infringements were alleged:
- Significant understatement of number of former franchisees within the Dog Wash provision and a failure to provide contact details for those former franchisees.
- Misrepresentation about cooling-off rights
The Franchisor advised the Franchisees that their rights to cool off under the Franchising Code of Conduct ended 14 days after the earlier of entering into the Franchise Agreement or making a payment to the Franchisor.
That is no longer the case. The cooling off period starts from the date the Franchisee enters into the Franchise Agreement.
Recent amendments to the Code removed the cooling off period starting from the earlier payment of a deposit.
Franchisees did not use their ability to terminate during the cooling off period in reliance upon these misrepresentations.
