Legal Insights
Red Card! Home Loan Provider Penalised $20 Million in Federal Court
The Federal Court of Australia has ordered that home loan provider, RAMS, pay a $20 million penalty due to widespread non-compliance with the National Consumer Credit Protection Act 2009 (Cth). Whilst legislation confirms standards and adequate supervision is required by a franchisor, whether it provides adequate protection for consumers before an event has occurred is to be determined.
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.
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?
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.
Franchising Code of Conduct - Government Response & Expected Changes
The Commonwealth Government has issued its response to the Independent Review of the Franchising Code of Conduct conducted in December 2023, with changes expected in 2025.