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Franchise Disputes: Does a franchisor and a franchisee have to attempt Alternative Dispute Resolution (“ADR”)?

Franchises, like any other business, have disputes with third parties and, of course, from time to time, with their franchisor.  There is nothing unique about a franchised business in that sense.  Where a franchise dispute arises, whether with the franchisor or third party, the starting point is to talk.  A simple without prejudice conversation often... Read More »

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Franchises, like any other business, have disputes with third parties and, of course, from time to time, with their franchisor.  There is nothing unique about a franchised business in that sense.  Where a franchise dispute arises, whether with the franchisor or third party, the starting point is to talk.  A simple without prejudice conversation often… Read More &raquo

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Franchise Disputes: Exclusion, Limitation and Basis Clauses – The Requirement of Reasonableness

Before entering into a franchise agreement, legal advice should always be obtained.  They are by their nature complex contractual documents.  It is common practice for franchisors to include in franchise agreements a clause that seeks to exclude or limit (or which has such effect) liability. There are two overarching types of clause in franchise agreements... Read More »

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Before entering into a franchise agreement, legal advice should always be obtained.  They are by their nature complex contractual documents.  It is common practice for franchisors to include in franchise agreements a clause that seeks to exclude or limit (or which has such effect) liability. There are two overarching types of clause in franchise agreements… Read More &raquo

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The implied term of “good faith” – a source of franchise disputes?

Ordinarily, in English Law, there is no term of “good faith” implied into commercial contracts. Sometimes, parties might include their own specific duty to act in good faith towards the other, although this is more the exception rather than the rule in many commercial agreements, including franchise agreements. However, it is not uncommon for parties... Read More »

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Ordinarily, in English Law, there is no term of “good faith” implied into commercial contracts. Sometimes, parties might include their own specific duty to act in good faith towards the other, although this is more the exception rather than the rule in many commercial agreements, including franchise agreements. However, it is not uncommon for parties… Read More &raquo

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Thanks to the coronavirus pandemic, force majeure is a contractual term currently experiencing fifteen minutes of fame.  It is now something franchisees tend to consider far more when becoming engaged in franchise disputes.  The expression literally means “an act of god”; in legal contractual terms it “means unforeseeable circumstance(s) that prevent someone from fulfilling a… Read More &raquo

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What is a Force Majeure clause? A fertile source of franchise disputes recently has been whether COVID has caused a franchise agreement to end by reason of “force majeure”.  Within the world of contracts, including franchise agreements, parties often find themselves unable to perform their agreements for reasons outside of their control.  In such circumstances,… Read More &raquo

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PROBATE DISPUTES: GRANTS OF REPRESENTATION AND CAVEATS The caveat and probate disputes It is an unfortunate truth that death often brings with it family disputes. It is important to take steps to try and prevent such disputes escalating out of control and prompt action is always incredibly important. In a probate dispute, the best course… Read More &raquo

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Franchise Agreements and Brexit   The UK left the European Union on 31 January 2020. We are currently in the middle of a transition period which shall end on 31 December 2020. Fortunately, there is actually little regulation of the franchising industry within the UK and those that do exist, which had any basis in… Read More &raquo

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Restrictive Covenants in Franchise Agreements   Restrictive covenants are very common in all sorts of contracts.  Employers will often use them to prevent employees from competing unfairly within a certain period of time following termination of their employment and franchisors will often use them to protect their goodwill and know-how in a franchise territory.  The… Read More &raquo

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Franchising – Overview and Franchise Disputes   What is franchising? The Franchise business model is a mutually beneficial method of expanding a business that, over recent years, has led to the immense growth of many of your favourite businesses, that you may not expect to be franchises  in the first place!  Franchising is where the… Read More &raquo

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Misrepresentations – Franchise Disputes

Misrepresentations- Franchise Disputes   Overview When a franchise relationship breaks down, it is not unusual for disputes to arise between the franchisor and franchisee over who is responsible for the failure of the business.  Often the franchisee will say that the franchisor over-egged the prospects of the business leading them to claim misrepresentation. To claim... Read More »

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Misrepresentations- Franchise Disputes   Overview When a franchise relationship breaks down, it is not unusual for disputes to arise between the franchisor and franchisee over who is responsible for the failure of the business.  Often the franchisee will say that the franchisor over-egged the prospects of the business leading them to claim misrepresentation. To claim… Read More &raquo

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Bankruptcy – what is it?   If you have found yourself in serious debt, bankruptcy could offer a chance to make a fresh start and be protected from people that you owe money to.  It can be a realistic and suitable option for addressing significant debts, but it may not be your only option.  You… Read More &raquo

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What is a personal guarantee?   A personal guarantee is a contractual promise.  It can be given by a director, business associate or family member in respect of the obligations of another party to do or pay something.  The personal guarantee can be called upon if that other party defaults on its obligations. You could… Read More &raquo

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Freezing Injunction – Overview

Freezing Injunction – Overview   What is a freezing injunction? A freezing injunction is a Court order which prevents a party from disposing or dealing with his assets. It is not granted to give the applicant security over the respondent’s assets or to give preference to the applicant over other creditors.  It has the important... Read More »

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Freezing Injunction – Overview   What is a freezing injunction? A freezing injunction is a Court order which prevents a party from disposing or dealing with his assets. It is not granted to give the applicant security over the respondent’s assets or to give preference to the applicant over other creditors.  It has the important… Read More &raquo

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Franchising a business    Is franchising a business always possible? There are a good many different business sectors that have benefited from franchising a business which has been successful and have done exceptionally well at it both for the benefit of their own business and those of their franchisees.  Take, for example, a few of… Read More &raquo

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Bankruptcy process – the rules change again   On 6 April 2016, the application process to make yourself bankrupt changed. The bankruptcy application procedure will now be online whereas previously, all applications had to be submitted to the Court, usually by first making an appointment to see the bankruptcy clerk and provided everything was in… Read More &raquo

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Glossary of Insolvency Terms   Administration This is a formal insolvency process requiring the appointment of a licensed insolvency practitioner. The purpose of administration is to save the company, or if that is not possible, to achieve a better result for creditors than in a liquidation.  If these are not possible, the purpose of the… Read More &raquo

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Franchise Charges – are they legal?   The nature of the charge It is not uncommon to see, in a franchise agreement, an obligation for the franchisee to pay a sum of money upon a certain eventuality occurring.  These franchise charges may not necessarily be recoverable as a matter of law, even if agreed in… Read More &raquo

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Directors Disqualification – Overview   What is a Directors Disqualification? These are claims brought against directors only or other types of individual who act as a director, but are not formally recognised as being directors in a way you might commonly understand them.  For example, ‘De Facto’ directors or ‘Shadow’ directors can also be disqualified… Read More &raquo

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Franchise Litigation – Franchisee Problems   Franchising is no different from other businesses in many ways.  From time to time, people fall out and disputes arise.  However, there are some rather unique aspects to franchise litigation that have to be borne in mind. Firstly, in most franchise disputes the starting point will be a lengthy franchise… Read More &raquo

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Franchise Agreement – Termination   Can a franchisor end a franchise agreement? It is common for franchisors to set out, in the franchise agreement, those circumstances when they are entitled to terminate a franchise agreement.  Termination is often reserved only for those circumstances which truly justify it, such as the following: (a) where the franchisee threatens… Read More &raquo

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