Delicia fined after admitting breach of Franchising Code

Delicia franchise code breach
Delicia failed to fulfil its marketing fund obligations. (Source: Delicia)

Health food and beverage retailer Delicia Franchising has been fined $11,100 after it admitted to breaking the Franchising Code, according to the Australian Competition & Consumer Commission (ACCC).

The company admitted its failure to provide franchisees with a copy of its annual marketing fund financial statement for the financial year ending on June 30, 2022. 

Aside from paying the penalty, Delicia has committed to prepare such financial statements with sufficient detail and provide them to franchisees within 30 days, as required by the Franchising Code. It will also implement and maintain a compliance program for three years.

“Franchisees often have to pay fees into a marketing fund operated by the franchisor, and the financial statements for these funds are important documents that allow franchisees to see how their money is being spent,” said ACCC deputy chair Mick Keogh.

“This enforcement action should serve as a reminder to the franchise industry that preparing sufficiently detailed marketing fund statements and providing them to franchisees are key requirements of the Code.”

Delicia Franchising is the franchisor of Delicia Acai + Protein Bar – a health food and beverages bar. Launched in 2018, the franchise currently has 10 locations.

This article was first published on sibling website Inside Retail.