The owner of a jumping castle franchise said that two former franchisees were ordered to pay back his company just under $20,000 because they breached the terms of their franchise agreement.
After allegedly holding equipment to ransom, Songning Li and Xiaomin Huang will also have to return $100,000 worth of equipment to their former franchisor Jumping J-Jays.
The jumping castle franchise was founded in 1997, specialising in renting out inflatable jumping castles and slides for children’s birthday parties and other social events.
The franchise operates in all of Australia’s capital cities, as well as in Gold Coast, Townsville and Wollongong.
Li and Huang operated their franchise out of the north Melbourne suburb of Mill Park, which officially opened in late 2013.
However, the pair terminated their operations in May last year, breaching the termination clause of their franchise agreement and leaving them in a difficult situation with their former franchisor.
Li and Huang took the matter to the Victorian Civil and Administrative Tribunal (VCAT) as they refused to pay termination costs, alleging that the franchisor was deceptive and misleading in their conduct and education.
VCAT, however, dismissed their claims and has demanded the pair pay $17,613 to the jumping castle franchise.