Franchising Decision Welcomed
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The Franchise Council of Australia has welcomed the High Court decision in relation to the Ketchell case which was causing great uncertainty within the franchising sector.
In a judgement that has attracted great attention in the franchising community, the High Court said that the failure by a franchisor to receive a statement from the franchisee as required by clause 11 of the Franchising Code did not mean that the franchise agreement was invalid.
This decision follows an appeal against the decision last year in which it was held that a franchise agreement was invalid because the franchisor had not received a written statement from the franchisee which was the requirement of clause 11 of the Code.
The Franchise Council expressed dismay over the initial judgement stating that it would cause uncertainty and allow franchisees to avoid the obligations under the franchise agreement.
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