Franchising Contracts and Good Faith – Beecham Motors Pty Ltd v General Motors Holden Australia NSC Pty Ltd

The Victorian Supreme Court’s decision in Beecham Motors Pty Ltd v General Motors Holden Australia [2025] VSC 125 highlights the importance of precise contractual drafting. Beecham Motors, a Holden dealership, sued GM Holden after General Motors announced the Holden brand’s exit from Australia, disrupting their contract.

This recent decision emphasises the need for clear, precise contract terms rather relying on good faith to give effect to uncertain terms. 

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Sec New Line Pty Ltd  v Muffin Break Pty Ltd – Franchisor Obligations and their Impacts on Franchisees

The recent Supreme Court decision of Sec New Line Pty Ltd & Anor v Muffin Break Pty Ltd has provided interesting insight into franchisor obligations, specifically whether there is a requirement to inform franchisees of important facts relating to their lease agreements.

The decision focused on two main questions – whether a franchisor is required to inform a franchisee about important changes to their lease agreement, and does reinstating a property’s condition require de-fitting?

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Key Changes to the Franchising Code

There have been some important changes to the Competition and Consumer (Industry Codes-Franchising) Regulations 2024. These changes will come into effect on 1 April 2025 and have the potential to impact the way franchises operate. As a result, it’s important that both franchisees and franchisors are aware of their new obligations and rights.

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