Jason Evans-Tovey successfully obtains interim injunctions enforcing post termination restrictive covenants in a franchise agreement
Jason Evans-Tovey successfully obtains interim injunctions enforcing post termination restrictive covenants and other post termination provisions in a franchise agreement where (possibly to take advantage of the principle in General Billposting v Atkinson) the franchisee argued that the franchisor had been in repudiatory breach.
On 27 February 2015 Mrs Justice Rose gave judgment in Martin & Co v Cedra Limited (lawtel).
Martin & Co franchised letting and sale agency services. One franchisee wanted to leave the franchise network but continue in the same business from the existing premises, albeit under a different name and get-up.
- demonstrates the courts willingness in cases where it is obliged to make some assessment of the merits to examine allegations of repudiatory breach to see whether they are or are not likely to succeed;
- supports the general approach to interim injunctions in franchise cases reflected in Team 2 Clean Ltd v Maftei.
The case is also another case in a line of recent cases showing willingness to enforce restrictive covenants in franchise cases.