Computa Tune Services Franchise [1995] IECA 447 (15th December, 1995)

Computa Tune Services Franchise [1995] IECA 447 (15th December, 1995)

The master franchise agreement contains provisions that restrict the franchisee's pricing freedom, employment of former employees, and use of knowhow beyond what is allowed under the category licence, thereby offending Section 4(1) of the Competition Act, 1991. The agreement does not conform with the provisions of the franchise category licence and is not eligible for a certificate.

Citation
[1995] IECA 447
Parties
Master Franchisor: Andrew Whittaker and Andrea Michele Whittaker trading as Computa Tune; Master Franchisee: Computa Tune Services Ltd; Principal of Computa Tune Services Ltd: Kenneth Green
Jurisdiction
Ireland
Procedural Posture
Competition Authority Decision / Decision on Notification for Certificate Under Section 4 of the Competition Act, 1991
Outcome
Refusal to issue certificate
Legal Topics
Franchise Agreements, Anti Competitive Agreements, Non Compete Clauses, Price Restrictions, Employee Solicitation Restrictions
Competition Law Franchise Agreements Anti Competitive Agreements Non Compete Clauses Price Restrictions Employee Solicitation Restrictions

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Parties

Andrew Whittaker and Andrea Michele Whittaker trading as Computa Tune

Master Franchisor

Computa Tune Services Ltd

Master Franchisee

Kenneth Green

Principal of Computa Tune Services Ltd

Procedural Posture

Competition Authority Decision / Decision on Notification for Certificate Under Section 4 of the Competition Act, 1991

Legal Issues

  1. 1 Whether the master franchise agreement contains provisions that offend Section 4(1) of the Competition Act, 1991
  2. 2 Whether the agreement qualifies for a certificate or category licence under the Competition Act, 1991

Ratio Decidendi

The master franchise agreement contains provisions that restrict the franchisee's pricing freedom, employment of former employees, and use of knowhow beyond what is allowed under the category licence, thereby offending Section 4(1) of the Competition Act, 1991. The agreement does not conform with the provisions of the franchise category licence and is not eligible for a certificate.

Court Disposition

Refusal to issue certificate

Orders

  • Certificate under Section 4 of the Competition Act, 1991 refused for the notified master franchise agreement.