Background
Billy Baxters is a coffee shop franchise system.
The case of Trans-It Freight Pty Ltd v Billy Baxters
(Franchise) Pty Ltd [2012] VCA 71 involves the Billy
Baxters' franchisor and its former Glenelg franchisee. The
franchisee had terminated their franchise agreement after the
business made losses and it was unable to pay the franchise fees.
The franchisor sued the franchisee, seeking recovery of unpaid
royalties and advertising fees under the franchise agreement.
In the first instance, the Supreme Court of Victoria found
against the franchisee who had admitted that $250,000 worth of fees
were unpaid. However, the franchisee had also issued a
counter-claim, seeking compensation for its losses suggesting that
the franchisor's representative had made misleading and
deceptive statements before the franchisee signed up to the lease
and franchise agreement.
