The ACCC on 22 September 2016 instituted proceedings against Morild Pty Ltd (the franchisor of the Pastacup system which originates in Perth) and its former director, Stuart Bernstein, seeking penalties under the Franchising Code which commenced on 1 January 2015.

It is alleged that those parties failed to comply with the Franchising Code in that the disclosure document failed to disclose the fact that Mr Bernstein had been a director of two previous franchisors of the Pastacup system that had become insolvent.

This is a timely reminder for franchisors to ensure they set out the relevant business experience of their officers in their disclosure document.

The ACCC is seeking penalties, declarations, injunctions and findings of fact and costs against the franchisor and Mr Bernstein.