Franchise Council Likely To Fund Ketchell Case Alone

SmartCompany.com.au:

The Franchise Council of Australia looks unlikely to receive any financial assistance from the competition watchdog or the Federal Government to fund the High Court appeal in the Ketchell case.

As SmartCompany reported last week, the High Court has granted special leave to appeal against the NSW Court of Appeal’s decision in Ketchell v Master Education Services, a decision that many in the franchising industry believe sets a dangerous precedent.

The High Court’s decision to grant leave is subject to the franchisor, Master Education Services, funding the legal costs of the franchisee.

The FCA looks likely to fund the case itself, and has asked the ACCC and the Federal Government to each kick in a third of the costs – estimated to be in the vicinity of $150,000 to $200,000 each.

FCA director Stephen Giles says when the Franchise Code was enacted, the then small business minister Peter Reith allocated $480,000 for funding franchising test cases to the ACCC.

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