Success for franchise owner in damages claim

Our client instructed us to advise him in relation to the trading agreements between his various companies and a major UK-based franchise business. The franchise business operated as a symbol group supplier to independently owned convenience shops and off-licences, and our client wished to withdraw from and end those trading agreements.

Our client’s desired exit strategies were to either:

1. be permitted to sell the businesses privately;
2. for the franchisor to purchase the businesses from him; or
3. if the first two options were refused, for the franchisor to agree to either
   1. give permission to transfer the underlease to allow trade under a potential new brand; or
   2. transfer the head lease accordingly.

We advised our client that he was in a good position, as he had a strong claim against the other party for unpaid rebates, lack of contribution to the development funds, failure to carry out due diligence and other repudiatory breaches of the trading agreement. Our client proceeded with a claim for damages based on these grounds and was successful in his endeavours.