From sladen.com.au: The Victorian Supreme Court’s decision in Sec New Line Pty Ltd v Muffin Break Pty Ltd affirmed that franchisors have limited obligations to communicate lease issues to franchisees, specifically regarding the non-renewal of lease agreements.

The court ruled that Muffin Break did not engage in misleading and deceptive conduct by withholding information about the lease status, as silence alone does not constitute misrepresentation in this context.

Additionally, the court determined that New Line was liable for de-fitting costs as stipulated in the franchise agreement, which required compensation for fulfilling lease terms.