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Eagle Boys Dial-A-Pizza: Potential Class Action
Background
Mitry Lawyers has been instructed by a number of franchisees to investigate and pursue a class action against franchisor company Eagle Boys Dial A Pizza Australia Pty Limited (Eagle Boys) in relation to allegations of misleading and deceptive conduct by Eagle Boys and alleged breaches of the Franchise Agreement existing between Eagle Boys and the each Franchisee (Agreement).
These links are to some press about some issues allegedly faced by franchisees:
Possible class action by franchisees
The proposed claim relates to:
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alleged unfairness and lack of justification of expenditure surrounding the advertising and marketing aspects of the Agreements, and
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alleged misleading and deceptive conduct in relation to the circumstances surrounding entry into the Agreements.
Under the Agreements, the franchisees are required to, amongst other things, pay an advertising contribution as a proportion of gross revenue to the advertising fund (AdFund). The franchise agreement governs the creation of the AdFund and the method in which the AdFund is administered.
It is alleged that the amount of moneys expended by Eagle Boys and the nature of the amounts spent in the way of advertising, is grossly inadequate and disproportionate by reference to the levies paid by the franchisees to the overall AdFund.
The Agreement imposes an ongoing obligation to the franchisees to contribute monies to the AdFund in circumstances where there has been a failure to expend a sufficient quantum, or quantum, of the AdFund in the franchisees’ respective catchment areas.
Allegations are also made in relation to the circumstances and disclosures made by Eagle Boys in relation to entry into the Agreements.
Eligibility to participate in class action
If you are a franchisee, or former franchisee of Eagle Boys and have encountered anything relating to the above, Mitry Lawyers are inviting you to participate and to be represented by Mitry Lawyers in this class action.
Each case will need to be assessed on an individual basis. If you are not eligible to participate in the class action, we are more than happy to help you with your individual case in any way we can.
Please note that at this stage, details of potential class action applicants are being compiled and claims being formulated. It is proposed that litigation funders will be engaged to fund the class action. Details of funding and cost consequences of the class action will be provided well in advance of seeking any form of committment to the class action.
How you can remain informed
Fill out the form at the bottom of this page to be added to our database. There is no obligation whatsoever in completing these details, as further details will be provided in advance of any commitment to a class action being made by you. Your details are subject to our privacy policy, the link for which is in the footer to this page.
Contact us to discuss
For further information, if you have a question or would like to discuss your matter further, please email Richard Mitry, Partner at richard@mitry.com.au and Catherine Nguyen, Associate at catherine.nguyen@mitry.com.au or call (02) 9222 2833.
Please refer to this webpage periodically for further information and updates.
How Mitry Lawyers can help
Mitry Lawyers solicitors are experts in bankruptcy and insolvency as well as commercial litigation and are wholly focused on achieving practical and commercial outcomes.
We can assist with:
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Personal and corporate (bankruptcy) insolvency
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Business reconstruction
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Debt restructuring and recovery
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Sale of Business
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Negotiations of commercial leases
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Contract negotiations
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Commencing or defending legal proceedings
FILL IN THIS FORM TO STAY INFORMED