Our dedicated litigation team have over 30 years combined experience of handling franchise disputes representing franchisors, franchisees and action groups of franchisees. They are headed up by Russell Ford, assisted by Nicola King, Lynsey Smith and Alicia West. The 2015 Chambers Guide to the UK Legal Profession recently described Russell as; “… a fantastic litigator – right from the get-go he is thinking tactics and substance. He is consistent in how he explains things.”
We are often instructed by franchisees, wishing to pursue claims for misrepresentation against their franchisor. Usually these arise out of statements made to the franchisee, to induce them into signing the franchise agreement, based on financial projections or the success/failure rates in the franchise network.
We have successfully acted for franchisees, winning such cases at trial and been awarded damages. We have also negotiated favourable settlements at mediation. Recent cases where we have successfully represented franchisees include
(2) MGB Printing and Design Limited –v- Kall Kwik UK Limited.
After negotiating settlement terms at a mediation one franchisee client wrote to us saying;
“We wouldn’t have got to this point without the professionalism and tenacity shown by you and your practice, for which I am extremely grateful.”
Representing franchisee Action Groups
We have represented dozens of action groups of franchisees, belonging to national networks, many involving household names. Frequently these involve allegations of breach of contract by the franchisor, such as territory infringement whilst building a national account customer base, failure to provide marketing or business support, the utilisation of leads from websites and over charging for products. We have experience of advising groups from 10 to over 100 franchisees.
As an example of recent work we were instructed by over 75% of a network of franchisees concerned about their franchisor attempting to convert their customers into national account customers and to then sub-contract that work back to the franchisees on less favourable commercial terms. The parties became embroiled in a High Court claim for over £1m which was then settled on good terms.
For franchisors we are able to defend misrepresentation claims, oppose group actions and take appropriate action against franchisees for breach of contract. This can involve bringing claims for substantial damages, for breach of contract and enforcing post-termination restrictive covenants, in relation to running a similar competing business or soliciting former customers by injunction
“ The energie Group have worked with the team at Owen White for many years, both on assignments here in the UK and overseas. We have always found the team at Owen White to be very responsive to our needs, providing solid, practical advice in a range of often quite complex legal cases. In effect they form a valuable extension to our own senior team. I would confidently recommend them without reserve. ”- Jan Spaticchia, Chairman & CEO of the energie Group
Our Dispute Resolution Solicitors
For further information about our disputes and litigation work or to discuss a particular situation in confidence, please contact Russell Ford.