Scotty's Premium Pet Foods Franchising Pty Ltd - s.87B undertaking

Scotty's is a franchisor of a pet food distribution service. On 18 September 2006, the ACCC notified Scotty's of its concerns the Scotty's, in its dealings with franchisees between 2004 and 2006 and in particular in its issuing of notices of franchise to each franchisee in September 2006 threatening termination of the franchises within 14 days, may have contravened the Franchising Code of Conduct and/or engaged in unconscionable conduct.

In response to the ACCC's concerns Scotty's withdrew the notices of breach it had issued.

Scotty's has provided court enforceable undertakings that it will, for a period of 12 months, not issue any notice of breach unless the notice meets a number of requirements including that it gives sufficient particularity of any breach alleged and any remedial step sought, as to enable compliance by the franchisee, and that prior to issuing the notice Scotty's will obtain a solicitor's certificate certifying that the solicitor considers the proposed notice to comply with the Code and that there is reasonable basis for issuing it.

Scotty's has also undertaken to nominate and notify to its franchisees the name, contact details and availability of a contact person, other than the principal, who can be contacted by the franchisees in relation to any disputes arising.

Further, that Scotty's will not approach customers of an existing franchisee to supply them direct unless certain criteria apply.