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[2018] WASAT 88
State Administrative Tribunal (WA)
2018-09-05
Justice J
Original judgment source is linked above.
I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.
Changes between Version 1.0 and Signed Version Franchise Agreement/Version 2.0
"If, with RPRS's approval, the Franchisee is to own the fit-out, the Franchisee must
appoint RPRS as its agent to manage the fit-out of the Site according to the RPRS
This is amended in the Signed Version Franchise Agreement and Version 2.0 to:
"If the Franchisee funds the acquisition of the fit-out of the Site, the Franchisee owns the fit-out and it must appoint RPRS as its agent to construct and maintain the fit-out of the Site in accordance with RPRS' standards"
The Board contested that this clause provided RPRS with a high degree of control over the pharmacy premises and did not allow the Franchisee with any discretion in respect of the fit out.
The Franchisee must purchase (or lease) and install the Equipment and Computer System at the Site before the Commencement Date and use them in the Franchised Business in accordance with any specifications set out in the Manual."
This is amended in the Signed Version Franchise Agreement and Version 2.0 to CI 13(b):
"If the Franchisee requests, RPRS must supply the Computer System for the Franchised Business. If the Franchisee does not so request, RPRS must provide the Franchisee with details of the suggested Computer System, together with a list of persons who are able to supply the items"
"RPRS to provide the Initial Training Program, if the Franchisee Requests"
"The Franchisee must ensure that every person who is to work in the Franchised Business (and any person required by RPRS):
(a) completes the Initial Training Program to the satisfaction of RPRS; and
(b) has every qualification, registration accreditation, licence or approval required by law, or reasonable required by RPRS ...
before the Commencement Date or, if later, before commencing work in he Franchised Business."
This is amended in the Signed Version Franchise Agreement and Version 2.0 to Clause 14.1:
"RPRS acknowledges that ... the Franchisee may want its staff to be familiar with the RPRS Core Services ... Accordingly, RPRS must provide the Initial Training Program and reasonable further training for Labour Hire Staff, if the Franchisee requests."
Clause 14.1 provided an opt-in provision. However clause 14.2 made it mandatory that all persons working in the business had completed the Initial Program.
There is no longer any requirement for every person in the Franchised Business to have completed the Initial Training Program.
States that the Franchisee must supply products and services from the Product Range. Product range is defined in cl 1.1 as all health, beauty and gift related items and other goods and services approved by RPRS.
This is amended in the Signed Version Franchise Agreement and Version 2.0 in cl 34.3(b) which states that Ramsay cannot unreasonably without its consent to the Franchisee buying Products from other suppliers or supply products not included in the Product Range.
This was a main reason for the Board's objection as it is one of the underlying principles of the Act that the Pharmacist should have complete control over its dispensing functions.
All Customer Information collected by the Franchisee is the property of RPRS"
This is amended in the Signed Version Franchise Agreement and Version 2.0 to cl 40(d):
"The Franchisee must grant RPRS a licence (on terms acceptable to RPRS, acting reasonably) for RPRS and its Related Entities to access the Customer Information of each customer who has consented to their information being collected, used and disclosed to RPRS and its Related Entities ..."
Changes between Signed Version Franchise Agreement and Version 2.0
The Core Services fee is reduced from $125,000 p.a under the old FA to $100,000 p.a. (Nb: it is still adjustable by the Percentage Increase, which remains unchanged in the new FA.)
A new subclause (d) has been inserted which states:
(d) Notwithstanding any other provision to the contrary; RPRS must not vary the Core Sen/ices fee by reference to the turnover or profitability of the Franchised Business.
The Core Services Fee is adjusted by the Percentage Increase. RPRS maintains the discretion to determine the Percentage Increase to be applied, which is to be exercised on the basis of 'policy indicators' (which, under the new subclause (d), cannot be by reference to turnover or profitability.)
The Franchise Fee is reduced from $75,000 p.a. to $50,000 p.a. (it is still adjustable pursuant to the Percentage Increase.
As in the above change, a new subclause (d) has been inserted which states:
(d) Notwithstanding any other provision to the contrary, RPRS must not vary the Core Services Fee by reference to the turnover or profitability of the Franchised Business.
The Power of Attorney clause has changed to include new sub clauses (A) & (B), which provide that RPRS is only appointed as attorney:
(A) On and from the date that is ten Business Days after the date RPRS notifies the Franchisee that is has failed to do that signing or other thing to be done by the Franchisee; and
(B) Until the date that the signing or other thing to be done, has been done, at which point the specific appointment as the Franchisee Company's attorney with respect to that particular signing or other thing to be done.
Additionally, new sub clauses (b) and (c) have been inserted which limit the attorney's exercise of rights and clarify the appointment provisions.
These clauses limit the circumstances in which RPRS can be appointed with power of attorney.
Jeruth Pty Ltd
Haybale Pty Ltd
Barnett and Barrier Reef Pools (WA) Pty Ltd [2016] WASAT 50
Jeruth Pty Ltd v Haybale Pty Ltd [2004] VSC 319
Re Minister for Immigration & Ethnic Affairs; Ex parte Lai Qin [1997] HCA 6; (1997) 186 CLR 622
Western Australian Planning Commission v Questdale Holdings [2016] WASCA 32
4.2 the SAT should not make an order for costs unless it finds that Pharmire has conducted itself in such a way as to unnecessarily prolong the hearing or has acted unreasonably or inappropriately: Chew and Director General of the Department of Education and Training [2006] WASAT 248 at [85];
4.7 further, withdrawal does not amount to a concession that the claim was without foundation or that the dispute was not genuine. The SAT cannot draw any adverse inference against a withdrawing party: WA Country Builders Pty Ltd and Hathersage Nominees Pty Ltd [2016] WASAT 70 at [16].
(1997) 186 CLR 622
(2000) 203 CLR 194