A recent High Court case has provided reassurance that the courts will continue to respect and enforce clearly drafted exclusion and limitation of liability clauses, even broad ones, unless to do so would have the effect of excluding all liability for all breach or would reduce one party's obligations to a mere declaration of intent. This case highlights and reaffirms the importance of precise wording when drafting commercial contracts.
In two recent cases, the English courts considered whether the duty of good faith should be implied into commercial contracts. These cases demonstrate that the issue of good faith is evolving in English law. Parties to relational contracts must therefore monitor developments to ensure that foreseeable risks are mitigated effectively in their contracts and commercial practices.
According to the latest British Franchise Association-NatWest survey of the franchising sector in the United Kingdom, around one-third of franchisees now run more than one franchise business, compared with just one-quarter in 2013. The trend is not just towards multi-unit franchising, but also towards multi-unit and multi-brand franchising. This article examines these risks and rewards from the perspective of both franchisors and multi-unit, multi-brand operators (also known as 'MUMBOs').
Successful franchisor-franchisee relationships which stand the test of time share the common traits of mutual respect, good communication, a convergence of interests, an appreciation of what drew the parties together in the first place and, perhaps most importantly, a willingness to make up. However, even the biggest and most successful franchise networks run into difficulties. This article considers common issues faced by well-established and successful franchisors and how to best handle or avoid them.
Franchising is a complex area of law and, aside from ensuring that a business is franchisable and ready to franchise, choosing the right franchise lawyer is a key strategic decision. The right specialist advice can maximise the chances for long-term success and minimise the risks of incurring big expenses and liabilities down the road. However, choosing a franchise lawyer who is a good fit can be difficult.
In the wake of the COVID-19 pandemic, the franchise model will play an important role in economic recovery, helping individuals to take their first steps into business ownership, presenting opportunities to established operators to grow their portfolios and enabling brand owners to expand and regain or grow their market share. This podcast explores the key legal considerations for any business which is preparing to franchise.
The IP Enterprise Court recently considered the impact of the EU Trade Secrets Directive on the law of breach of confidence – in particular, in the context of ex-employees who sought to franchise their services. The case confirms the limited impact of the directive on the pre-existing law on breach of confidence. However, it also indicates that the directive can be useful in helping to tease out the distinctions between confidential and non-confidential information.
The year 2019 was one of high-octane political drama for the United Kingdom, culminating in its withdrawal from the European Union. While there was no cliff edge on 31 January 2020, there are significant challenges ahead, including in the cross-cutting area of data protection, which could affect many UK businesses.