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Allphones agrees to ACCC restrictions

After being taken to court regarding allegations of impropriety in its dealings with franchisees, Allphones has pledged to remedy the situation.

Allphones Retail has pledged to the Federal Court to better inform franchisees - and not prevent them from selling their franchises - after an ACCC appeal to the Federal Court.

The ACCC had petitioned the Federal Court for urgent interlocutory orders against Allphones, alleging the company had acted deceptively and breached the Franchising Code of Conduct in dealings with its franchisees.

According to the ACCC, Allphones had refused to allow franchisees to sell their business, which is a clear breach of the franchising code.

The company had also sent out a misleading position paper to its franchisees, the ACCC claims, placing it in breach of the Trade Practices Act.

In response, Allphones has promised the court it will clarify the misleading position statement.

The company has also pledged not to prevent franchisees from selling their franchises, and not to engage in contract negotiations without providing details of the company's yearly revenue.

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More about: ACCC, ACT

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