Franchise Disputes

Early dispute resolution input is critical. We regularly act on matters including termination, managing franchisee performance issues, injunctive relief to prevent competition with the network, and strategies to avoid escalation of network-wide franchisee unrest.

Notable deals and highlights

• We acted on behalf of a leading UK care home provider in its successful claim against franchisees in the leading recent English High Court judgment in this sector. Judgment was awarded in favour of our client in relation to every aspect of its claim (including its post-termination covenants) including indemnity costs award.
  
• We acted on behalf of an international hotel chain in its defence of a claim brought by a franchisee in India.
• Our team advised on risk, quantification of compensation and associated multimillion claims arising from the closure by a leading High Street bank of a network of banking agencies.
• We represented a group of more than 100 franchisees in a dispute concerning their franchisor's level and quality of support to their businesses, advising on possible exits from the network. The broader dispute was eventually resolved in a complex, yet successful, mediation involving almost 70 parties.
• We represented a franchisor in a High Court and Court of Appeal dispute against a former franchisee who had continued to trade in breach of post-termination restrictions.
• The team secured an injunction for an international food franchisor to restrain a former franchisee from operating a competing franchise in breach of post-termination covenants. The competing franchise (in several former territories) had been set up to conceal the former franchisee's involvement.
• We advised a services franchisor on wholesale changes to its franchise strategy and connected disputes with a number of groups of franchisees.