THINGS YOU NEED TO KNOW
Troy Rickard began operating his franchise in 2004 and incorporated T & T Rickard Pty Ltd as the franchise holder.
At that time the company's primary services included test and tag, emergency point testing, microwave testing, RCD testing and thermal imaging and some electrical repair work.
Troy Rickard's primary tasks involved servicing existing clients which had been generated by the company and offered to Troy Rickard.
Troy Rickard was encouraged to market for new business and generate clients personally.
Troy Rickard had no industry experience, he knew nothing of the test and tag business, he knew nothing of marketing to clients to sell the services, he knew nothing of developing relationships in the associated B2B industry and knew nothing of franchising.
Troy Rickard was trained by company team members in each aspect of his role and he was provided unfettered access to all such relevant files, data and supporting information as was the case for all The applicant franchise operators.
The company through its normal processes generated an increased volume of work and Troy Rickard employed multiple staff to service the sites allocated to his franchise.
Clients provided were large organisations or otherwise organisations well established in the public domain.
With an increasing client base and strong business, Troy Rickard focussed on client service, nurturing client relationships and did not focus on generating new business.
In May 2009 Rowan Wilson, a close friend of Troy Rickard was employed by T & T Rickard Pty Ltd to work under the supervision of Troy Rickard. For some period of time prior, Troy Rickard and Rowan Wilson were musicians in the same band and also members of the Moana Surf Life Saving Club.
At all times both Troy Rickard and Rowan Wilson presented themselves as diligent and loyal members of the franchise team.
Troy Rickard and Rowan Wilson had discussed and planned that Active would become a competitor to the franchise company and developed the Active business as a structure to take over company clients including Flinders Medical Centre (FMC).
Troy Rickard regarded Rowan Wilson as his business partner.
Active Safety Services Pty Ltd was incorporated with its sole director being Rowan Wilson, on 11 April 2011.
The relationship was structured such that Rowan Wilson was the face of Active enabling Troy Rickard to remain invisible.
Early in 2011 Troy Rickard met with staff at FMC and told them he was getting 'screwed' by the company and losing money. Troy Rickard convinced FMC to obtain the complete FMC test history records from the company and when received by FMC the records were immediately forwarded to Troy Rickard.
Rowan Wilson contacted FMC indicating his interest in setting up his own company and inferring he would take over the FMC contract.
Troy Rickard prepared the FMC quotation for Active dated 5 May 2011 whilst still operating the applicant's franchise. Both Troy Rickard and Rowan Wilson were properly trained in the needs of the hospital and it was a foregone conclusion that the Active quotation would be accepted. With both Troy and Rowan continuing to service the hospital there was no loss in continuity.
Troy Rickard successfully converted the FMC contract from a client of the franchise company to a client of Active whilst Rowan Wilson presented as the face of Active.
Troy Rickard ceased to work the company's Franchise in May 2011.
Thereafter and retrospetively, Troy Rickard unsuccessfully claimed the 2010 franchise deed he executed was not valid, thereby ending the franchise relationship in Sep 2010. The 2010 deed had a principal term commencing in Sep 2010 with an expiry in Sep 2013, plus a cascading restraint.
Client information from company records was readily available to Troy Richard.
Client Data available from the database included details such as decision makers, contract details, site numbers, site addresses, phone numbers, emails, quantities of equipment, charge rates and importantly dates when sites fall due for their servicing.
A number of clients were converted from clients of the franchise company to clients of Active. They include:
The true extent and number of clients converted to Active is unknown.
Whilst acting as a franchise of the company, Troy Rickard accessed company secrets. Various procedures, forms and records that the applicant took years to develop and refine ("The System") were available. The extent of Troy Rickard's collection of company secrets is unknown.
Knowledge of the company's client data and The System allowed quotes and proposals to be sent to clients just prior to their next due service. How very convenient, particularly when the quotation was at a reduced cost.
Using the Client data and The System obtained from the franchise company, Troy Rickard possessed qualified clients, the knowhow and the service standards required to win contracts and to maintain contracts. Troy Rickard was in possession of the applicant style 'ready made-business', a turn-key operation.
The franchise company secured service contracts with major clients, developed strong client relationships and in good faith trained Troy Rickard in these systems and processes. Using Active as the vehicle and with the skill set provided by the company Troy Rickard converted company's clients as though they were his own.
The court case exposed both Troy Rickard and Rowan Wilson, their behaviour, their conduct, their strategy and how they utilised Active as a vehicle to convert the company's clients.
IT WAS FOUND THAT MR WILSON'S EVIDENCE ON THIS TOPIC ENTIRELY UNCONVINCING (POINT 247) AND MR RICKARD'S FAILURE TO ADMIT THE TRUTH IN HIS PLEADINGS REFLECTS POORLY ON HIS CREDIT (POINT 274).
THINGS YOU NEED TO KNOW
ABOUT TROY RICKARD, ROWAN
WILSON AND ACTIVE
Judgement was entered in April 2017.
The franchise company won in the 2 areas of judgement, liability and damages.