Domino’s fined for failing to inform franchisees about marketing pool spend
Pizza giant Domino’s has become the first company in Australia to be fined for not complying with the Franchising Code of Conduct after failing to detail how $40m in marketing pool funding was being spent.
The action, launched by the Australian Competition and Consumer Commission, saw the fast food company fined a total of $18,000 for the breach, but the company has described the failure as “an honest mistake”.
Companies which require franchisees to pay into a marketing pool must prepare annual statements for franchisees detailing how the money is being spent.
