MELBOURNE (Blue MauMau) - The self-proclaimed top Australian franchising body, the Franchise Council of Australia (FCA), has announced it will fund an appeal to the Australian High Court on behalf of franchisor Master Education Services.

The High Court granted the franchisor special leave to appeal against the New South Wales Court of Appeal’s decision in Ketchell v Master Education Services, subject to the franchisor paying the franchisee’s costs of appeal.

The FCA sought funding from the Australian Competition and Consumer Commission and the Federal Government which was denied. The FCA will now the fund costs of the case itself on behalf of the franchisor.

The NSW Court of Appeal in the Ketchell v Master EducationServices case held that where a franchisor does not have a written acknowledgement that a franchisee has received, read and had an opportunity to understand the disclosure document, the franchise agreement is unlawful and unenforceable.

The decision to fund a franchisors legal action against a franchisee has left franchisees and other observers questioning the impartiality of the FCA, which purports to represent all sides of franchising.