Franchise Marketing funds – ACCC announces its position on what the Franchisor must do
- Keep the money in a dedicated bank account
- Only apply the money consistently with earlier disclosure to Franchisees
- Only apply the money to reasonable costs (unless a majority of franchisees agree)
- Have an audit annually and, without being asked, provide it to Franchisees (unless 75% vote against that)
Domino’s Pizza was fined $18,000 in May 2017 when the ACCC considered it failed to follow these rules. Plus, ACCC is in the process of suing Ultra Tune, alleging failures to comply with the Franchising Code.
Any Franchisee who suffers financial loss because a Franchisor fails to follow these rules can contact Adley Burstyner lawfirm for advice on compensation and any other remedies available.