The Australian Competition and Consumer Commission has instituted injunctive proceedings in the Federal Court against Adelaide based franchisor A1 Mobile Radiator Repairs Pty Ltd and its director, Norman Sidney Trayling of Lobethal.
The action follows allegations by four franchisees that through a series of advertisements, oral representations and promotional material the franchisor misrepresented the profitability, risk and other aspects of its business so as to recruit franchisees. The allegations concern only the franchising operation, not the business of repairing radiators.
The ACCC is seeking declarations and orders that include freezing of assets, costs, compensation and damages. A directions hearing will be held in Adelaide on 25 November.