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Fieldfisher | United Kingdom | 28 Sep 2021

High Court rules that damages are not adequate remedy for breach of franchise agreement

In a recent case, the High Court decided that damages were not an adequate remedy for the contractual breach of a franchise model. This case will reassure franchisors seeking to protect the reputation of their brand and franchise network against franchisees who fail to maintain the standards that they have invested time, money and effort in establishing.
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Aramis Law Firm | France | 14 Sep 2021

Resale prices for online sales in franchise networks

Online sales in vertical agreements (eg, franchising) give rise to a variety of legal issues, including the extent to which franchisees may be bound to observe the prices of the products advertised on the network's website, which is managed exclusively by the franchisor. The Commission for Examination of Commercial Practices (CEPC) recently provided greater legal certainty to parties to......
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Fieldfisher | United Kingdom | 3 Aug 2021

Managing franchisee debt – new insolvency laws update and tips for minimising franchisor financial exposure

Some of the economic measures put in place to reduce the impact of the covid-19 pandemic are here to stay. One such measure, section 233B of the Insolvency Act 1986, which was introduced by the Corporate Insolvency and Governance Act 2020, can have a significant impact on franchisors. Franchisors should act now to review their franchise agreements and supply terms to ensure that they provide......
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Lapointe Rosenstein Marchand Melançon LLP | Canada | 3 Aug 2021

Deli wars! Unauthorised Dunn's franchisees and their directors are liable for infringement

The Federal Court recently decided on a matter of alleged trademark and copyright infringement. This case is an important example of how franchisors can use trademark and copyright legislation to protect their brand and enforce ownership of their franchise system. It also serves as a reminder for franchisors to ensure that the copyright in various materials used in the franchise system is......
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Fieldfisher | United Kingdom | 1 Jun 2021

Talking mumbo jumbo: legal risks and rewards of multi-unit, multi-brand franchising

According to the latest British Franchise Association-NatWest survey of the franchising sector in the United Kingdom, around one-third of franchisees now run more than one franchise business, compared with just one-quarter in 2013. The trend is not just towards multi-unit franchising, but also towards multi-unit and multi-brand franchising. This article examines these risks and rewards from......
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Lapointe Rosenstein Marchand Melançon LLP | Canada | 27 Apr 2021

When it's not 'better late than never' with franchisee claims

The Quebec Superior Court recently revisited certain franchising principles and reaffirmed the leading principles of Dunkin' Brands Canada Ltd v Bertico inc concerning the duties of franchisors, while holding both franchisor and franchisee responsible for their respective actions and negligence that led to the downfall of their relationship. This decision highlights the importance of......
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Fieldfisher | United Kingdom | 16 Mar 2021

A litigator's perspective: the trouble with success

Successful franchisor-franchisee relationships which stand the test of time share the common traits of mutual respect, good communication, a convergence of interests, an appreciation of what drew the parties together in the first place and, perhaps most importantly, a willingness to make up. However, even the biggest and most successful franchise networks run into difficulties. This article......
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Aramis Law Firm | France | 9 Mar 2021

Unfair competition in case of financial support provided by franchisor

May franchisors provide financial support to their franchisees through loans or payment periods? This question is of interest as this type of financial support is often provided to franchisees in order to help them set up and run their outlets. In a 2020 decision, the Supreme Court had the opportunity to rule on this question in a lawsuit between Speed Rabbit Pizza and Domino's Pizza France.
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Fieldfisher | United Kingdom | 2 Mar 2021

How to select and what to expect from your franchise lawyer

Franchising is a complex area of law and, aside from ensuring that a business is franchisable and ready to franchise, choosing the right franchise lawyer is a key strategic decision. The right specialist advice can maximise the chances for long-term success and minimise the risks of incurring big expenses and liabilities down the road. However, choosing a franchise lawyer who is a good fit......
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Lapointe Rosenstein Marchand Melançon LLP | Canada | 16 Feb 2021

Cold cut for franchisees! Supreme Court of Canada denies designated supplier's duty of care for pure economic loss

The Supreme Court of Canada recently dismissed the proposed class action brought by Mr Sub franchisees against Maple Leaf Foods for damages resulting from a listeria outbreak linked to Maple Leaf cold cuts. By ruling in Maple Leaf's favour, the majority of the court found that no duty of care is owed by an exclusive supplier for purely economic losses suffered by franchisees with which the......
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