Franchise Disputes

Section 944 Companies Act actions available for shareholders

Alistair is often called to advise minority shareholders in franchises over account problems.

A typical scenario is where a majority shareholder has diverted web sales to a separate entity or levied management fees which did not form part of the shareholders’ agreement.

A s.944 action is launched through the High Court and has the advantage that the electronic filing cost is low compared to the new Civil Court fees regime.

Alistair can advise on s.944 actions in conference after perusing your essential franchise documents.

 

Before counsel meets in conference

Before counsel meets in conference with a Franchisee it helps to obtain an ‘overview’ of the business and relations with any corporate partner or Franchiser.

If you seek advice in conference on a Franchise Dispute, counsel requests that he is furnished with copies of the following documents:

  1. Contract/s between all parties involved in the Franchise.
  2. Copy of any Companies House shareholder registration.
  3. Lease/s relating to the Franchise address.
  4. Company articles of association.
  5. Chronology of Franchise Dispute.
  6. Franchise Income.
  7. Franchise Expenditure.
  8. Head Franchise Agreement.
  9. Relevant correspondence.
  10. Minutes of key meetings.
  11. Company accounts.
  12. Any relevant ‘Whats App’ messages and e-mails relating to the Franchise Dispute.

Copies of as many of these documents as possible helps counsel ‘get up to speed’ on the issues with a view to advising you on the best way forward in conference.