Ashtons Legal’s Franchise court success

Posted 16/01/2014

Ashtons Legal’s specialist Franchise team have recently had a franchisee’s counterclaim struck out by the Court from a successful security for costs application.

The Franchisor issued proceedings themselves against an ex-franchisee for a modest sum that they were owed. This was met with a defence and counterclaim by the financially vulnerable ex-franchisee for approximately £80,000.

Acting for the Franchisor, Robert Tiffen, who heads up Ashtons Legal’s franchising disputes team, successfully applied for security for costs against the ex-franchisee. Appearing in Court, he obtained an order for the ex-franchisee to make a payment into Court to be able to continue the counterclaim. After the ex-franchisee failed to do so, the counterclaim was struck out. Robert also secured an order that the ex-franchisee pay the Franchisor’s costs in the application.

Robert commented: “This is a useful reminder of the need for Franchisor’s to act swiftly to deal with claims from ex-franchisees. Quick, decisive, targeted action here meant that the Franchisor didn’t have to risk spending a fortune on legal fees to deal with an ex-franchisee who was in fragile financial circumstances. We were able to refocus the court case to the real issues between the parties in a very cost effective and powerful way.”

For advice on matters relating to Franchising, please contact our Franchise team.