Min & Min 2020 Pty Ltd v Chicken v Pty Ltd and Anor

The case before the court involved Min & Min 2020 Pty Ltd (the Plaintiff) against Chicken v Pty Ltd and Anor (the Defendants). The dispute centred around a franchise agreement and a licence to operate a Korean fried chicken business. The Plaintiff, a franchisee, alleged that the Defendants, the franchisors, engaged in misleading and deceptive conduct under Section 18 of the Australian Consumer Law, causing financial loss. The court was required to determine the proper construction of the license agreement and whether the conduct of the Defendants amounted to misleading and deceptive conduct, as well as whether the Plaintiff’s losses were caused by such conduct.

The court examined the terms of the franchise agreement and the circumstances surrounding the operation of the business. It considered whether the Defendants' actions constituted misleading or deceptive conduct under the Australian Consumer Law. The court needed to establish if there was a causal link between the alleged misleading conduct and the Plaintiff’s financial loss. The analysis included assessing the nature of the relationship between the parties, the specific terms of the franchise agreement, and the broader commercial context.

After reviewing the evidence and legal arguments presented, the court found that the Plaintiff's claim was not substantiated. The court dismissed the Plaintiff’s claim and ruled in favour of the Cross-Claimant on the cross-claim. The court ordered the Plaintiff to pay the Cross-Claimant’s costs of the proceedings and the cross-claim, and the Second Cross-Defendant to pay the Cross-Claimant’s costs of the cross-claim. The judgment clarified the interpretation of the franchise agreement and determined the financial responsibilities of the parties involved.