Davaria Pty Ltd V 7-eleven Stores Pty Ltd

Galactic Represented more than 200 franchisees of 7-Eleven stores in Australia. They alleged that 7-Eleven misled the applicants in respect to the business opportunity of operating the store, the profitability of the store, and the cost of operating a store, including the cost of wages. They breached the franchise agreement by only permitting the franchisee to purchase stock from the franchisor, when the franchisees could have purchased stock from cheaper suppliers and failed to account to franchisees for rebates received by 7-Eleven from stock purchased by the franchisees.

In August 2021, shortly prior to the matter proceeding to final hearing, the parties executed a deed of settlement resolving the dispute the subject of the proceedings. The agreement was that 7-Eleven would pay the Applicants the sum of AUD $98 million and the claims against 7-Eleven would be dismissed.

Galactic has received all of the costs as well as the Security for Costs posted. A commission for the funder was agreed upon. In subsequent arguments before the court, Galactic is fighting to increase that commission.

If the Court makes a common fund order, Galactic will receive AUD $41.7 million. Alternatively, if the Court makes a fund equalization order, Galactic will receive at least AUD $34.2 million.

‍