Personalised Chocolates 4U has misled franchisees and breached the Franchising Code of Conduct, the Federal Court has found following legal action by the Australian Competition and Consumer Commission.

ACCC chairman Graeme Samuel said "The false and misleading statements made by Personalised Chocolates 4U were designed to entice work-from-home entrepreneurs to buy a franchise in circumstances where PC4U was unable to provide franchisees with promised software, training and support.

"This outcome reminds all franchise owners that their promotional material must be truthful and accurate, and that it is illegal to accept payment for goods and services that cannot reasonably be provided."

The court has also found the franchise's sole director, Troy Patching, was involved in all the breaches.

Promising but failing to provide franchisees with the functioning software or training manuals necessary to operate the franchise, claiming a refund of franchise fees was available when the conditions were impossible to meet, publishing testimonials on its website from non-existent franchisees, and claiming a business system was not in fact a franchise, were all misleading actions.

Personalised Chocolates 4U must now publish a corrective notice on its website, inform former and current franchisees of the court orders, implement a trade practices law compliance program and training, and pay a contribution to the ACCC's court costs.