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Jani-King (GB) Limited v Pula Enterprises & Ors [2007] EWHC 2433 (QB)

Jason Evans-Tovey successfully represented a franchisor at the trial of preliminary issues relating to the effect of some clauses commonly found in franchise agreements.

The Court (HHJ Peter Coulson QC) held that: (i) in the lengthy and detailed franchise agreement no term was to be implied imposing upon the franchisor an obligation of trust and confidence; (ii) no term was to be implied entitling the franchisee to terminate the 20 year fixed-term franchise agreement on reasonable notice; (iii) an obligation on the franchisor to give such reasonable continuing assistance and advice as the franchisor in its sole discretion considered necessary did not contain an implied obligation on the franchisor to exercise that discretion reasonably; and (iv) that various claims had been settled by a subsequent agreement.

The judgment (available here) usefully provides an authority against arguments sometimes raised by franchisees.



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