“We can confirm that we are investigating Jump! Swim School and had been prior to contact from the FCA,” a spokesperson said.
“Whether this conduct results in a breach is ultimately a decision for the courts.”
A well-placed source said the ACCC was investigating potential breaches of Australian Consumer Law and of the Franchising Code of Conduct.
A spokesperson for the ACCC said it was focusing on conduct that may result in widespread consumer or small business detriment.
“This is not simply determined by the number of complaints but by the nature of conduct that can be provided against the relevant parties,” the spokesperson said.
Former Jump! franchisee Juliet Sharpe has terminated her contract with the swim school franchise after paying $165,00 for a franchise two years ago plus more than $100,000 in rent.
Ms Sharpe alleges Jump! was seven months behind on the rent at her swim school in Sydney and the franchise has been evicted by the landlord.
Ms Sharpe said she welcomed any investigation into the swim school and hopes it means franchisees can get some answers, but it is cold comfort for her personally.
“I can’t see me ever getting my money back and I can’t see my pool ever being built,” she said.
Jump! has been contacted for comment.
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Cara is the small business editor for The Age and The Sydney Morning Herald based in Melbourne