Kwik Fix International Pty Ltd - s.87B undertaking

Kwik Fix International Pty Ltd ("Kwik Fix") is a franchisor of mobile repair services for motor vehicle paint, plastics and interiors. ACCC instituted proceedings against Kwik Fix, director Mr David Bruckshaw, and a former director, Mrs Kerry Bruckshaw, alleging:

• misleading conduct and/or misrepresentations as to the franchise purchase price and profitability;
• contraventions of the Franchising Code of Conduct including failure to meet disclosure and advice requirements; and
• unconscionable conduct regarding the circumstances of entering into franchise and loan agreements, subsequent attempts to resolve issues in dispute, and failures to meet requirements of an applicable code of conduct.

Whilst disputing the allegations, Kwik Fix and David & Kerry Bruckshaw settled proceedings by way of court enforceable undertakings to:

• (a) withdraw the purported termination of the complainant's franchise and repurchase it;
• (b) implement an additional internal complaints-handling/dispute resolution system;
• (c) implement a document/records management system; and
• (d) agree to Consent Orders (made by the Federal Court on 9.9.03):
          (i)   to implement a Trade Practices compliance program; and
         (ii)  restraining them for a period of five years from engaging in conduct similar to that alleged in the proceedings.