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Jump Swim ordered to pay penalties of $23 million and Ian Campbell ordered to pay compensation
The franchisor Jump Loops Pty Ltd (in liquidation) (Jump Swim) has been ordered to pay penalties of $23 million for making false or misleading representations and wrongly accepting payments from franchisees, in proceedings brought by the ACCC.
Jump Swim offered ‘Jump Swim’ branded learn-to-swim school franchises for sale between March 2016 and July 2019.
The Federal Court declared, by consent, that Jump Swim falsely represented to 174 franchisees that they would have an operational swim school within 12 months of signing a franchise agreement. Most of those franchisees never received an operational swim school.
The founder and former managing director of Jump Swim, Ian Michael Campbell, was also ordered by the Court to pay $500,000 in compensation to franchisees, and to pay a penalty of $400,000. Jump Swim offered learn-to-swim school franchises for sale between March 2016 and July 2019. The Federal Court declared, by consent, that Jump Swim falsely represented to 174 franchisees that they would have an operational swim school within 12 months of signing a franchise agreement. Most of those franchisees never received an operational swim school. The court also found Jump Swim accepted payments from 127 franchisees when it knew it was unlikely to be able to provide a franchise within 12 months, or within a reasonable period of time.