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In a 9 year battle Australia’s largest franchisor of restaurants, Jack Cowin’s Competitive Foods is taking US giant Yum! Brands to Court claiming unconscionable conduct.
Cowin maintains in his statement of claim that he has paid Yum! $94 million in royalties.
They have refused to renew franchise agreements with no legal basis for one of the most successful franchise groups after 42 years of building the business.
Why? Because they don't think they have to, and can transfer goodwill to their own account. Jack Cowin
With Cowin’s 15 of his remaining KFC agreements set to expire next Wednesday an injunction hearing in the Federal Court is set down for Monday. He has another 31 outlets with agreements set to expire at different times over the next 15 years.
The claim accuses Yum! of refusing to renew agreements with no legal basis, ‘deliberately diminished the value of the stores and frustrated sale negotiations’ ensuring he would not be able to sell the businesses as going concerns . Further he claims Yum! wrongly told a prospective buyer many of the outlets needed to be demolished and rebuilt.
We intend to contest the claims vigorously in the court proceedings and look forward to this long-running matter finally being resolved. Sally Glover, Yum! Australia
Cowin with an estimated worth of $618 million is the franchisor of the Hungry Jack's chain in Australia and amongst a wide portfolio of investments also owns 20% of Domino's in Australia.