Domino’s pays thousands for alleged Franchising Code breach
Domino’s Pizza is the first company to pay penalties for alleged non-compliance under the Franchising Code of Conduct.
An updated version of the Franchising Code of Conduct came into effect on 1 January 2015, allowing for infringement notices to be issued by the Australian Competition and Consumer Commission (ACCC) for alleged breaches of the code.
After being issued two infringement notices, Domino’s paid a total of AUD $18, 000 for allegedly not providing its franchisees with an annual marketing fund financial statement and an auditor’s report on time.
The ACCC’s Deputy Chair, Michael Schaper, said marketing fund contributions are often a significant expense for franchisees and that a franchisor needs to provide timely disclosure of activities.
“Ensuring small businesses receive the protection of industry codes is an enforcement priority for the ACCC,” said Dr Schaper.
If franchisees are required to contribute to a marketing fund, the Code requires a franchisor to prepare an annual financial statement to franchisees, disclosing the fund’s receipts and expenses, and to give a copy of the financial statement to franchisees by no later than four months after the end of the financial year.
The Code also requires the fund to be audited (unless 75 per cent of franchisees agree the franchisor does not have to comply with this requirement) and for the auditor’s report to be provided to franchisees within 30 days of the report being prepared.
A Domino’s spokesperson confirmed that it had not provided its audit report on time, saying it was “an oversight”.
“Domino’s apologises to our franchisees for this honest mistake, and will ensure an annual audit report and financial statement are distributed to franchisees as required by the Code each year going forward,” the Domino’s spokesperson said.
- Australia’s new mandatory Franchising Code of Conduct comes into effect
- ACCC warnsfranchising industry over new unfair contracts law
- Domino’sPizza defends itself
A team of US scientists have discovered children who have certain levels of microorganisms in their ...
Bulla Dairy is offering two desserts in one this summer, creating an ice cream inspired by custard t...
A new “caviar” product is being sold online by a Singaporean food group targeting Australian consume...
The 2017 Product of the Year winners have been announced.
Vitasoy has launched a new soy milk called ‘2 Beans’.
An individual’s sense of smell may be key to losing or gaining weight a new study has found.
Zambrero quick-service Mexican is offering a new vegan menu option after receiving “impassioned feed...
A central NSW mustard seed oil has won a medal at specialty food competition in New York.