Diab Pty Ltd v YUM! Restaurants Australia Pty Ltd [2016] FCA 43

CONTRACTS – representative action – respondent franchisor implemented a strategy setting maximum prices and product ranges for franchisees – whether, on the proper construction of the franchise agreement, the franchisor was in breach by reducing the prices on its ranges of pizzas – whether implementation of strategy would breach implied terms, including an implied term of good faith, of the franchise agreement – categories of damages: income/trading loss, capital loss

CONSUMER LAW – whether implementation of the strategy would involve unconscionable conduct by the respondent under s 21 of the Competition and Consumer Act 2010 (Cth) sch 2

NEGLIGENCE – whether the franchisor owes a duty of care to each franchisee in relation to any conduct or decision it makes and in the exercise of its powers under the franchisee agreement

Tim Castle appeared for the appellant.