March 5, 2021
The Federal Court has found Australia-wide courier delivery franchisor Megasave Couriers misled franchisees with false guarantees of weekly payments and annual income.
In proceedings brought by the Australian Competition and Consumer Commission (ACCC), the Federal Court declared Megasave Couriers Australia breached consumer law by making false or misleading representations to incoming franchisees.
Megasave admitted, from September 2019 to July 2020, it promised potential franchisees guaranteed minimum weekly payments of about $2,000 and an annual income of $91,000.
However, the company was not paying its existing franchisees the promoted weekly payments, and it did not have the revenue to pay franchisees in line with its claims.