MST Lawyers is proud to announce that firm Principals Alicia Hill and Raynia Theodore have been included in the 2023 Edition of Best Lawyers™ in Australia.
The case of Watt v Shepherd (No 3)  FCA 1670 concerned a dispute that arose in the creation of a franchising business. It was found in earlier proceedings that Shepherd had made misleading and unconscionable representations to Watt regarding the franchising business. This case required the Court to consider how to calculate the loss and damage and what to award the mislead party.
It is not uncommon for franchisors of retail networks to hold the lease of the franchisee’s business premises and then grant occupancy rights to the franchisee under a sub-leasing or licensing arrangement.
Important Update – Franchising Code of Conduct Penalties substantially increased to include “Mega Civil Penalties”
Regulations giving effect to increasing penalties for contravention of the Franchising Code of Conduct come into effect of 15 April 2022. The Code now has some very serious teeth such that franchisors who are ambivalent about compliance should now expect severe financial penalties. The amendments double most maximum civil penalties to 600 penalty units (currently $133,200), increase the number of civil penalty provisions and significantly imposed “mega civil penalties” of $10M plus for certain contraventions of the Code.