Find a Franchise
Franchise Advice

 

Update: Ketchell's Case

In our last hot topic we discussed the decision of Ketchell v Master Education Services in which the NSW Court of Appeal found that the Franchisor's failure to strictly comply with the requirements of regulation 11 (1) of the Code (requirement for the franchisee to provide signed written statements that it has received, read and had a reasonable time to understand the disclosure document and the Code) rendered the Franchise Agreement illegal and unenforceable.

The High Court has granted leave for the Franchisor to appeal the decision. However, before the appeal can proceed the franchisor is required to undertake to pay all of the franchisee's costs of the appeal. The franchisor has indicated that it is unable to fund the appeal.  However, given the potential impact of this decision on the franchising industry, the Franchise Council of Australia has agreed to fund the appeal. The Franchise Council has received some support from the industry but is still seeking further support so that the appeal can proceed.

We will keep you posted as more information comes to hand.

This article appears courtesy of Macpherson & Kelley Lawyers

20-Nov-2008

Contact Macpherson & Kelley Lawyers :
(all fields are mandatory)

Store my details for future Quick requests
Keep me informed of other related opportunities


More Macpherson & Kelley Lawyers franchise articles

  • Oceanwalk awarded Damages (25-Nov-2008)
    ...Oceanwalk Pty Ltd was the Master Franchisee for the Mr Whippy territory in south-eastern Queensland. The master franchise was for a term of 10 years (ending in May 2003) with an option to renew for a further 10 years. Oceanwalk exercised its...
  • State inquiries into Franchising (24-Nov-2008)
    ...Following on from the federal government's inquiry into franchising (and the subsequent changes to the Code), both the South Australian and Western Australian governments commenced their own Inquiries into franchising. The findings and...
  • Bakers Delight (21-Nov-2008)
    ...The Australian Competition and Consumer Commission ("ACCC"] has finalised its investigation into the Bakers Delight franchise chain. The investigation was commenced to investigate complaints regarding unconscionable conduct allegations including...
  • Amendments to the code (19-Nov-2008)
    ...As you would know from 1 March 2008 all Disclosure Documents and Franchise Agreements must comply with the new Franchising Code of Conduct ("Code"). A copy of the new Code must be provided with all Disclosure Documents.  The new Code can be...
  • FRANCHISING MATTERS @ M+K (19-Aug-2008)
    ...Celebrating 100 years, Macpherson Kelley Lawyers (M+K) now employs over 100 people and is experienced in all areas of commercial law. Operating in Melbourne and Dandenong, M+K's Franchise Lawyers assist a diverse client base in all aspects of...

More Legal Services articles

  • A victory for common sense in High Court decision (9-Jan-2009)
    ...The Australian franchise sector is celebrating the clarity and certainty provided by the High Court of Australia in its decision in Master of Education Services Pty Limited v Ketchell [2008] HCA 38 handed down on 27 August 2008. HCA 38 handed down...
  • Franchising Update – Changes to the Franchising Code of Conduct (22-Dec-2008)
    ...The Federal Government announced on 15 August 2007 the amendments to be made to the Franchising Code of Conduct in light of the Matthews Report recommendations.The amendments require several changes to be made to the Disclosure Document that...
  • After Ketchell: Still a Lesson for Franchisors (19-Dec-2008)
    ...Ketchell (Master Education Services Pty Limited v Ketchell [2008] HCA 38) was recently subject to a successful appeal to the High Court of Australia. A summary of the background to the case and of the High Court’s decision is set out below.Those...
  • Ongoing Obligations of a Franchisee - What have I gotten myself into? (18-Dec-2008)
    ...The First DayYou have read a lot about franchising, made enquiries and settled on your franchise.  The brand looks good, the system is up and running and you feel confident that with the training and support from the franchisor you will be...
  • International Franchisors Inbound (17-Dec-2008)
    ...Franchising has developed in Australia through well known international brands.  Foreign Franchisors are looking to Australia and New Zealand as potential markets to expand their brand. A number of foreign Franchisors have now successfully...
1176 franchises listed