Comino Prassas an insight on Franchise Legal Advice

Comino Prassas  first became involved with franchising disputes in 1989.

At that time we received instructions to act for eight franchisees that operated convenience stores from Caltex branded service station sites.  

We were successful in reaching favourable settlements for the franchisees in their dispute with the franchisor company (a fully owned subsidiary of Caltex Australia) after three years of hard fought litigation which proceeded to the High Court of Australia.  

Throughout the 1990s following our success with the Convenience Stores franchising dispute we received instructions to act for many other franchisees involved in franchise disputes with their respective franchisors in franchises relating to food, products and services.  

The vast majority of actions we commenced on behalf of franchisees were either settled favourably for the franchisee or resulted in favourable verdicts or judgments from the courts that determined the actions, as a result of our franchise legal advice.  

In our experience the main complaints and sources of franchise problems which franchisees have with their franchisors include the following:

1. The franchisor in the negotiations to provide a franchise agreement made false or misleading statements, representations or promises which induced the franchisee to enter into the franchise agreement.  
2. The franchisor has failed to perform its obligations and responsibilities as set out in the franchise agreement.
3. The terms of the franchise agreement and the manner in which the franchise is conducted and operated by the franchisor is harsh unfair and unconscionable.
4. The franchisor’s franchise agreement and disclosure document fails to comply with the laws to protect franchisees which include the Trade Practices Act, the Fair Trading Act and the Franchising Code of Conduct.      

Our firm and the manner in which we deal with franchisee disputes has received considerable media profile including lengthy articles in The Sydney Morning Herald, for actions against franchisors who failed to comply with their legal obligations to franchisees.  

Since the end of the 1990s our firm has also acted for franchisors advising them on the preparation and content of their franchise agreements and franchise disclosure documents so as to ensure compliance with the law and to achieve best practice standards in franchising.  

We continue to advise franchisees on how to protect and enforce their rights and aim to provide them with the appropriate franchise legal advice.