QSR Legal Stoush - Competitive Foods Australia vs. Yum Restaurants

This Monday 26th March Competitive Foods Australia and Yum Restaurants Australia will meet in court over the closure of 15 KFC franchised stores.

According to Competitive Foods Australia this has been a long and protracted dispute, which dates back to 2007. Competitive Foods Australia wants 2 outcomes. Firstly to continue to operate 15 KFC stores (over 600 jobs) whose license is about to expire, for a period of at least 6 months to resolve their dispute. Secondly they want an inclusion of a "good faith" clause added into the franchising code of conduct to protect franchisees. Paul Plowman a company spokesperson for Competitive Foods Australia claim that Yum's actions, both in not helping find a buyer for the sites and not granting an extension have devalued the business significantly, alleging their actions are "opportunistic".

In response Sally Glover, Corporate Affairs Officer with Yum! Restaurants Australia comments “We entirely reject the allegations being made by Competitive Foods in this case - the claims being made are baseless and without merit.

Indeed much of what is being alleged is so far-fetched that it bears no relation to the true position. We intend to contest the claims vigorously in the court proceedings and look forward to this long-running matter finally being resolved.”