In this case, a franchisor sought to enforce post termination non compete covenants against an ex franchisee – as well as bringing other claims – all very standard. To the surprise of the franchisor, it lost its claim and the judge adopted a novel approach to the enforceability of post termination non compete covenants.
The franchisor appealed to the Court of Appeal. The hearing took place at the end of May. Judgment is expected any time – if it is favourable to the franchisee High Court judges will have to follow the Court of Appeal’s approach in future cases. This will result in franchise agreements having to be re-written and the approach taken by franchisors changed.
Whatever the Court of Appeal’s decision a careful review of the case reveals changes that all franchisors should make to their procedures and approach.
As soon as the judgment is available the bfa will notify you of the date and time of its webinar to share the important points to be gleaned from the case and what franchisors should do about it. The webinar will be conducted by John Pratt, of Hamilton Pratt who has predicted that the Court of Appeal’s decision could be “a game changer”!
We will let you know as soon as information is received about when the judgment will be available.
