Fast meals franchisee makes $21m compo claim for Maccas misplaced to Metro

by Lionel Casey

First, McDonald’s demanded the Andrews government supersize its repayment for demolishing the burger chain’s flagship city keep to build a new underground rail line.

Now, the franchise that ran the shop needs more significant than 13 instances what the authorities at first presented – looking for $21.6 million, not the $1.6 million first placed on the table – for terminating its Swanston Street enterprise.

The government, after disputing the declare from the franchise, appears to have buckled and last month quadrupled its provide.

But this $6.7 million provide became now not enough for the franchise, which has taken its combat to the Supreme Court.

Combined with a separate McDonald’s Supreme Court declare for $70.7 million – as opposed to the $29.5 million it became offered using the authorities – the needs may want to see Victorians pay more than $ ninety-two million to shut down the quick food outlet.

The store, which turned into after the Young and Jackson pub, became demolished to make way for station entrances to the brand new Metro Tunnel rail line underneath vital Melbourne.

McDonald’s owned the shop, and North West Investments ran it beneath a franchise agreement.

The shop opened in 1984 and with spherical-the-clock operations have become the metropolis’s busiest McDonald’s. It made meals sales of $7.2 million in its final year of commercial enterprise.

In a submission to authorities, the operator argued the shop sold so many hamburgers and french fries due to its “specific place [close to] Flinders Street train station, Federation Square, St Paul’s Cathedral and the Swanston/Flinders Street tram stops.”

North West Investments is owned with the aid of businessman Ken Turner, who with McDonald’s informed the authorities three years in the past that shutting down the multi-level store could mean the lack of one hundred seventy-five jobs.”Mr. Turner told a franchising website he ran five shops around Melbourne, and company filings show he has owned his business enterprise for the reason that 1982. His court files say his enterprise have to be compensated as it has been “unable to relocate the enterprise to every other comparable area.”

His declare for $21.6 million includes $19.Four million for “disturbance” to his commercial enterprise – inclusive of his deliberate future sale of the agency.

His corporation is likewise claiming $1.95 million in “solatium,” a criminal term for compensation for inconvenience, loss or injury. And Mr. Turner desires the government to pay $170,000 in fees for his lawyers Corrs Chambers Westgarth and monetary advisors Ferrier Hodgson.

The Age contacted North West Investments on Wednesday, but Mr. Turner was unavailable for remark.

A spokesman for the Department of Transport said that the tactics of the Land Acquisition and Compensation Act have been being accompanied in determining reimbursement for the land. But he said he could not offer similarly remark.

“As this is an on-going depend before the courts we are not able to remark further right now,” he said.

McDonald’s turned into one in all 95 houses the authorities received on the way to construct the $eleven billion underground rail line, to permit more trains to run thru Melbourne’s town center.

Of those 95 assets acquisitions, approximately ten are predicted to turn out to be being disputed in court, although the dispute over the Swanston Street McDonald’s is via ways the most massive financial war of words between an owner and the authorities.

 

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