Tuesday, March 17, 2009

Breaches of the Franchise Code By the Directors

BREACHES OF THE FRANCHISE CODE OF CONDUCT BY
GILLIAN ERSKINE DIRECTOR
PAUL MYATT DIRECTOR & CEO PHILIP CINIGLIO

These Breaches include:Failure to create a Disclosure Document for the Franchisee as required by 6(1) of the Code.
A breach of clause6(2)(a) in that the solvency statement is not for last financial year.Failure to provide financial reports for each of the last two completed financial years.
A breach of clause 6(2)(c) in that the disclosure document was unsigned.A breach of clause 6(b) in that the disclosure document was not current.
A breach of clause 6(b) & 10 of the Code was not given to the prospective Franchisee by the Franchisor.
The Franchisor entered into the Franchise agreement when clause 11(1) of the code had not been complied with in that the franchisor has not received from the franchisee a written statement by the franchisee that it had received, read and had a reasonable opportunity to understand the disclosed document and the code.
The franchisor entered into the franchise agreement when clause 11(2) of the code had not been complied with in that the Franchisor had not received signed statements from any of an independent legal advisor, an independent business advisor, independent accountant, nor received a signed statement from the franchisee that the franchisee had been given that kind of advice or been told that such advice be sought and decided not to seek it.

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