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Articles by Gordon Drakes
Key developments in UK franchising case law – a year in review - Franchise World | UK’s longest established franchise magazine
As 2023 drew to a close, I reflected on the key developments in UK franchising case law in the year that was. There were four cases of note, three judgements awarded in favour of the franchisor, and one in favour of the franchisee. By Gordon Drakes, Partner, Fieldfisher Interestingly all four cases are related to the topic of non-renewal and termination, and there are number of key takeaways for franchisors to bear in mind.
Franchise case law update: Body Shop
Introduction Facts Decision Comment Introduction In Burke Partnership (A Firm) v Body Shop International Ltd - Chancery Division,(1) the High Court was asked to declare whether a franchisor's notice to terminate two franchise agreements (which had been in force since the early 1980s) on reasonable notice was valid. The Court declared that it was not, as there was no contractual right to terminate for convenience and Body Shop's counterclaim for alternative declarations was unsuccessful.
2023 year in review: franchising case law
Introduction Body Shop v TBP Introduction This article reflects on the key developments in franchising case law in the United Kingdom in 2023. There were four cases of note, three judgments awarded in favour of the franchisor and one in favour of the franchisee. Interestingly all four cases are related to the topic of non-renewal and termination, and there are number of key takeaways for franchisors to bear in mind as they prepare for the year ahead.
2023 Year in Review: Franchising Case Law in the UK
As 2023 draws to a close, we reflect on the key developments in franchising case law in the UK in the year that was. There were four cases of note, three judgements awarded in favour of the franchisor, and one in favour of the franchisee. Interestingly all four cases are related to the topic of non-renewal and termination, and there are number of key takeaways for franchisors to bear in mind as they prepare for the year ahead.
Franchise Case Law Update: The Body Shop does not come up smelling of roses
In Burke Partnership (A Firm) v Body Shop International Ltd - Chancery Division - [2023] EWHC 2897 (Ch), the English High Court was asked to declare whether a franchisor's notice to terminate two franchise agreements (which had been in force since the early 1980s) on reasonable notice, was valid. The court declared that it was not, as there was no contractual right to terminate for convenience and Body Shop's counterclaim for alternative declarations was unsuccessful.
Franchise Case Law Update: You've Been Served
English High Court confirms that a franchisor validly denied a franchisee a renewal because it had failed to provide its accounts. The English High Court recently considered the validity of a franchisor's counter notice opposing the extension of a franchise agreement. In the case of Winkworth Franchising Ltd v Goble [2023] 7 WLUK 235, the franchisee had failed to provide accounts within the time frame required under the agreement.
International franchising expansion: key legal issues
Planning stage Pre-contract stage Contracting lifecycle Comment The article is the second in a two-part series on international franchising and looks at some of the key legal issues that often arise in international franchising.(1) Planning stage IP audit First, it is important that franchisors make sure they own or can license all aspects of the "system".
Franchise case law update: You've been served
English High Court confirms that a franchisor validly denied a franchisee a renewal because it had failed to provide its accounts. The English High Court recently considered the validity of a franchisor's counter notice opposing the extension of a franchise agreement. In the case of Winkworth Franchising Ltd v Goble [2023] 7 WLUK 235, the franchisee had failed to provide accounts within the time frame required under the agreement.
English High Court confirms that franchisor validly denied franchisee its renewal for failing to provide accounts
Facts Decision Comment The High Court recently considered the validity of a franchisor's counter notice opposing the extension of a franchise agreement. In the case of Winkworth Franchising Ltd v Goble,(1) the franchisee had failed to provide accounts within the time frame required under the agreement. By way of summary judgement, the Court granted a declaration in favour of the franchisor.
International franchising expansion: key structures
Introduction Direct franchising Development franchising Master franchising Joint venture franchises Strategic joint ventures Comment Introduction Franchising can be a powerful tool for businesses looking to expand internationally. As an alternative to expanding corporately, it allows a brand to reach more markets quicker, and leverages off the capital investment, and local expertise and infrastructure of the franchisee.
Franchise case law update: exclusivity - is the feeling mutual?
Facts Decision Comment The High Court recently considered the concept of exclusivity in the case of London Business House Limited, Faisal Rehman v Pitman Training Limited, Pitman Training Group Limited. The judgment also considered whether there was a case for fraudulent misrepresentation in relation to the franchisee's alleged reliance on pre-contractual statements.
Mr Beast's Burger Bother
YouTube megastar Mr Beast last week filed a claim in the US District Court against dark-kitchen and delivery business, Virtual Concept Concepts for breach of contract. Through his company, Beast Investments LLC, Mr Beast accuses the food delivery business of damaging his brand and reputation by offering low-quality products to customers at some of the 2,000 dark kitchens worldwide it operates under his name.
Political spotlight falls on McDonald's - what does it mean for the UK franchise sector?
The recent BBC’s investigation into alleged working practices at McDonald’s attracted substantial political interest, no doubt due the brand’s recognition and the fact that it is one of the largest private sector employers in the UK, with an average age of 20 years old across its workforce. The allegations are very concerning, and will inevitably have a negative impact on the perception of McDonald’s - and possibly the wider perception of the franchising sector in the UK.
Franchise Commercial case law update: Exclusivity - is the feeling mutual? Re London Business House Limited, Faisal Rehman v Pitman Training Limited, Pitman Training Group Limited | Fieldfisher
Introduction: The English High Court recently considered the concept of exclusivity in the case of London Business House Limited, Faisal Rehman v Pitman Training Limited, Pitman Training Group Limited. The judgement also considered whether there was a case for fraudulent misrepresentation in relation the franchisee's alleged reliance on pre-contractual statements.
To approve or disapprove? Lessons on good faith, contractual discretion and interpretation
Fieldfisher | Franchising - United Kingdom Facts What is the Braganza duty? Decision What lessons can be learned?
Franchising in digital world: Unfair Contract Terms Act, changes to model and other considerations
Changes to model Other considerations Comment Changing consumer habits and technological innovations, in addition to the covid-19 pandemic, are having an increasingly significant impact on the traditional franchise model. This article, the second in a two-part series, continues to consider the nature of those changes, the inherent legal risks they pose and some practical guidance for managing them.
Franchising in digital world: risks and rewards of implementing consumer-facing tech in franchise network
Introduction Bigger picture Contractual authority Testing phase Communication Timings Introduction Changing consumer habits and technological innovations, in addition to the covid-19 pandemic, are having an increasingly significant impact on the traditional franchise model. This article, the first in a two-part series, considers the nature of those changes, the inherent legal risks they pose and some practical guidance for managing them.
Franchising in the metaverse: opportunities, tips and predictions
Introduction Comment Introduction Non-fungible tokens (NFTs) are key to unlocking many parts of the metaverse, but there are many other concepts to consider when looking at opportunities for consumer-facing brands in the metaverse. First, brands will need to get to grips with the concept of the metaverse to understand the opportunities it offers. At its simplest, the "metaverse" is a digital ecosystem that enables users to interact with others in a three-dimensional virtual environment.
Franchising from both sides of the fence - free ebook
An illuminating, free to view, read to franchising for aspiring/existing franchisees and franchisors alike, Franchising from both sides of the fence, offers advice from leading advisors in the sector on the essential topics. See below to view.
Podcast: how to prepare your business for franchising | Lexology
United Kingdom
October 6 2020 In the wake of the COVID-19 pandemic, the franchise model will play an important role in economic recovery, helping individuals to take their first steps into business ownership, presenting opportunities to established operators to grow their portfolios and enabling brand owners to expand and regain or grow their market share.
IP Enterprise Court considers interplay of EU Trade Secrets Directive and breach of confidence for first time | Lexology
The IP Enterprise Court recently considered the impact of the EU Trade Secrets Directive (2016/943/EC) on the law of breach of confidence – in particular, in the context of ex-employees who sought to franchise their services.
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