Dwyer (UK Franchising) Ltd v Fredbar Ltd & Anor

Dwyer (UK Franchising) Ltd v Fredbar Ltd & Anor

The defendants had no right to rescind the franchise agreement for misrepresentation or undue influence; claimant breached the force majeure and MAP Fund clauses but defendants affirmed the contract; claimant validly terminated the agreement for repudiatory breach; restraint of trade covenants were unreasonable and unenforceable; claimant entitled to damages for pre-termination competition and return of franchise property.

Parties
Claimant: Dwyer (UK Franchising) Limited; Defendant: Fredbar Limited; Defendant: Mr. Shaun Rowland Bartlett
Jurisdiction
England and Wales
Judgment Date
11 May 2021
Procedural Posture
Commercial Franchise Dispute / Judgment After Trial on Liability and Injunctive Relief
Outcome
Claimant's claim for damages and return of franchise property granted; injunctive relief for restraint of trade covenants denied; counterclaim dismissed.
Legal Topics
Misrepresentation, Undue Influence, Force Majeure, Restraint of Trade, Breach of Contract, Damages, Injunctions
Contract Law Commercial Law Franchise Law Misrepresentation Undue Influence Force Majeure Restraint of Trade Breach of Contract +2 more

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Parties

Dwyer (UK Franchising) Limited

Claimant

Fredbar Limited

Defendant

Mr. Shaun Rowland Bartlett

Defendant

Procedural Posture

Commercial Franchise Dispute / Judgment After Trial on Liability and Injunctive Relief

Legal Issues

  1. 1 Whether the franchise agreement was procured by misrepresentation or undue influence
  2. 2 Whether the claimant breached the force majeure clause
  3. 3 Whether misuse of the MAP Fund constituted a repudiatory breach

Ratio Decidendi

The defendants had no right to rescind the franchise agreement for misrepresentation or undue influence; claimant breached the force majeure and MAP Fund clauses but defendants affirmed the contract; claimant validly terminated the agreement for repudiatory breach; restraint of trade covenants were unreasonable and unenforceable; claimant entitled to damages for pre-termination competition and return of franchise property.

Court Disposition

Claimant's claim for damages and return of franchise property granted; injunctive relief for restraint of trade covenants denied; counterclaim dismissed.

Orders

  • Defendants to return franchise property including Manual and telephone number 02922 414253
  • Defendants to pay outstanding MSF fees of £2,976.84