Samara v Franklins Ltd

Samara (the appellant) brought proceedings against Franklins Ltd (the respondent) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the respondent's alleged breach of contract and misleading and deceptive conduct in relation to a franchise agreement.

The Court of Appeal was required to determine whether the respondent had breached its contractual obligations to the appellant, and whether its conduct constituted misleading or deceptive conduct in contravention of the *Trade Practices Act 1974* (Cth). Specifically, the court considered whether the respondent had failed to provide adequate support and training to the appellant as required by the franchise agreement, and whether representations made by the respondent regarding the profitability and viability of the franchise were misleading.

The Court of Appeal, in its reasoning, applied principles of contract law and consumer protection legislation. It examined the terms of the franchise agreement to ascertain the respondent's obligations and assessed the evidence presented regarding the respondent's conduct and the representations made. The court considered the objective meaning of the contractual terms and the likely impact of the respondent's conduct on a reasonable franchisee.

The Court of Appeal found that the respondent had breached the franchise agreement and engaged in misleading and deceptive conduct. The appeal was allowed, and the matter was remitted to the primary judge for the assessment of damages.