API-OWNED pharmacy banner group Priceline Pharmacy says it is focused on supporting its franchisees through the COVID-19 crisis, rather than a potential class action lawsuit (PD yesterday).
In responding to the prospectus issued by law firm, Levitt Robinson, a spokesperson for the pharmacy group told Pharmacy Daily that "at the current time there is no class action against Priceline".
"Apparently, it can only proceed if enough franchisees agree to a funding agreement," the spokesperson said.
"We believe the lead applicant in the proposed action is a former Priceline franchisee who is no longer with the brand.
"Priceline remains focused on supporting our franchisees, doing our utmost to keep them, their staff and customers safe during this COVID-19 crisis and protecting the brand and business we have built together.
"We have no further comment to make on this matter."
Levitt Robinson alleges that franchise agreements between pharmacy owners and Priceline Pharmacy may contain provisions which "may breach the current legislative framework which governs pharmacies in NSW, Queensland and Victoria.
However, a spokesperson for the Pharmacy Council of NSW, which regulates pharmacy ownership, told Pharmacy Daily it reviews franchise agreements for compliance with schedule 5F of the Health Practitioner Regulation National Law (NSW) and in particular the provisions related to financial interests, in relation to stores in the state.
"The Council will not approve an application supported by a franchise agreement which contravenes schedule 5F of the Law," the spokesperson said.
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