Dibbs Abbott Stillman on Lenard’s appeal

According to Dibbs Abbott Stillman , on 10 February 2006, an application for special leave to appeal to the High Court of Australia was refused for The Silver Fox Co Pty Ltd & Ors v Lenard’s Pty Ltd & Ors.

You may recall from last year that The Silver Fox Co's claim – that franchisor Lenard's made misleading statements about the profitability and site selection of their failed franchised store – was dismissed by the Federal Court of Australia. M

The refusal to grant leave to appeal to the High Court in this case is a "win" for Lenard's, and all Franchisors. But the history of the case reinforces:

· that Franchisors should revisit their methods of inducing new franchisees into their system, to ensure that they are not "stretching the truth" about what is on offer and its potential for success.

· the need for good paperwork, including well drafted agreements and disclosure packages, and collecting written acknowledgments of the receipt of that information, and of independent legal or other advice, from franchisees.

There is more to read about buying a franchise and running a franchise.