The Snap-on Tools case – a warning to litigious franchisees!

Contact: Tony Stumm, Partner 

The NSW Court of Appeal recently dismissed a claim by a franchisee who sued the franchisor for loss or damage because the franchisee was not able to prove that the loss or damage was attributable to the franchisor’s misconduct.

The case goes against the trend of many aggrieved franchisees successfully suing for damages based on allegations of the franchisor’s misconduct or misrepresentation.

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