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The Federal Court recently handed down a fine of $3.55 million to a franchisor, as well as individual fines to the directors and company officeholders, who were found to have engaged in misleading and deceptive conduct. The severity of these penalties highlights the importance of ensuring disclosure documents and franchise agreements are factually accurate and compliant with the Franchising Code of Conduct. Failure to comply can result in heavy penalties being imposed on both the franchisor and the individuals involved.