Franchise accused of bullying tactics
posted on 26th June 2013
A franchise seeking to enforce restraint of trade clauses against a former franchisee is being accused of bullying tactics by a family friend of the former franchisee who has set up a similar business employing a former staff member. Cookright Kitchen Services has said the company will not address the issue in public. Restraints of trade are a hot issue at the moment, with an article by David Munn in the latest issue of Franchise New Zealand exploring the topic in detail.
In a solicitor's letter to Tily, Cookright claims she was working in association with the former franchisee and therefore breaking the terms of settlement between Cookright and the former franchisee.
The terms of settlement say the High Court has made an order restraining the former franchisee from operating within Southland, Invercargill or Central Otago, or 100 kilometres from those regions until December 31, 2015.
The letter says Tily was using the same premises, employees and vehicle as the former franchisee, with a similar name which had been used by the former franchisee for another business.
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