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ARTICLE · 11 FEBRUARY 2009

The Franchise Affair - Key Recent Developments Relevant To Franchising

Lawrence Graham LLP: Commerce & Technology
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Franchising has been a means of commercialising products and services since the 1850s when Isaac Singer who had made improvements to an existing model of a sewing machine wanted to increase the distribution of his machines.

United KingdomMedia, Telecoms, IT, Entertainment
Jonathan Riley
Jonathan Riley

Franchising has been a means of commercialising products and services since the 1850s when Isaac Singer who had made improvements to an existing model of a sewing machine wanted to increase the distribution of his machines. His efforts, though unsuccessful in the long run, resulted in some of the first franchises. Today, franchising is used in more than 70 industries and that generates more than $1 trillion in U.S. sales annually. This article reviews some recent key legal developments relevant to franchising.

The Nature Of A Franchise Agreement

The 'stand out' case in recent times is Jani-King GB v Pula Enterprises (2007). This looked at the nature of a franchise agreement in relation to the terms which might be implied into to. It also considered the extent to which the franchisor is subject to an obligation to act reasonably towards the franchisee.

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