What is this practice called and is it legal in the UK 'Update'

[beyond the blue]

I have dealt with a franchisee of a well known UK company for many years, who, for some personal reason have started to drag their heels. I contacted another franchisee of the same company (who l want to continue to use) who refused to deal with me as it was company policy not to tread on the toes of the first franchisee, is this common or even legal and what would this practice be called?

 

[Box Brownie]

Not sure if it has a defined 'name'.....

But I think that most(all?) franchise businesses are structured around around geographical territories.

As such IMO their contracts will include 'non compete' & 'no poaching' clauses and likely include a clause that says should a potential or current customer contact them 'out of their territory' they are obligated to refer you to the appropriate branch.

If you have an issue with a franchisee then AFAIK your (only?) recourse is to take up the matter with the "franchisor".

Hopefully you can get to the bottom of the change in the service and get a response from the franchisor.

 

[JonathanRyan]

I have dealt with a franchisee of a well known UK company for many years, who, for some personal reason have started to drag their heels. I contacted another franchisee of the same company (who l want to continue to use) who refused to deal with me as it was company policy not to tread on the toes of the first franchisee, is this common or even legal and what would this practice be called?

Yes - that's legal. And I believe it's not uncommon (franchises often have no-compete clauses so one franchisee can't poach clients from another's "area")

Any business or individual can decline to do business with another as long as they are not discriminating (such as not doing business with an entire race). So in the famous gay cake case, the bakery could just have said "I'm not selling you anything" but instead they basically said "we're not creating a cake that supports your sort of people" so it went through several courts. (So many I've forgotten who finally won).

 

[Garry Edwards]

Yes - that's legal. And I believe it's not uncommon (franchises often have no-compete clauses so one franchisee can't poach clients from another's "area")

Any business or individual can decline to do business with another as long as they are not discriminating (such as not doing business with an entire race). So in the famous gay cake case, the bakery could just have said "I'm not selling you anything" but instead they basically said "we're not creating a cake that supports your sort of people" so it went through several courts. (So many I've forgotten who finally won).

The lawyers won.

 

[Nod]

They're usually the only ones that really do.

 

[onomatopoeia]

Yes - that's legal. And I believe it's not uncommon (franchises often have no-compete clauses so one franchisee can't poach clients from another's "area")

Any business or individual can decline to do business with another as long as they are not discriminating (such as not doing business with an entire race). So in the famous gay cake case, the bakery could just have said "I'm not selling you anything" but instead they basically said "we're not creating a cake that supports your sort of people" so it went through several courts. (So many I've forgotten who finally won).

The bakery won in the Supreme Court and the ECtHR declined to accept an appeal as contrary to what some believe, one is not guaranteed a hearing there after losing in the national court of last resort, so that's where the case ended. Finding was that you can't force someone to promote a cause they don't agree with (that comes from a previous European Court of Human Rights decision which the Supreme Court took account of, rather than from a UK law), and the applicant wasn't discriminated against due to a protected characteristic (his sexuality) as the bakery would have refused the same request from anyone.

I have supported equal marriage for decades, long before civil partnerships were introduced in England and Wales, but that case was a foolish cause for the Equality Commission for Northern Ireland to pursue on IMO.

 

[JonathanRyan]

The bakery won in the Supreme Court and the ECtHR declined to accept an appeal as contrary to what some believe, one is not guaranteed a hearing there after losing in the national court of last resort, so that's where the case ended. Finding was that you can't force someone to promote a cause they don't agree with (that comes from a previous European Court of Human Rights decision which the Supreme Court took account of, rather than from a UK law), and the applicant wasn't discriminated against due to a protected characteristic (his sexuality) as the bakery would have refused the same request from anyone.

I have supported equal marriage for decades, long before civil partnerships were introduced in England and Wales, but that case was a foolish cause for the Equality Commission for Northern Ireland to pursue on IMO.

Thanks

And I agree - it was the wrong hill to die on. The original customers didn't want a cake - they wanted to be denied a cake. As always, everybody lost except lawyers.

 

[beyond the blue]

Getting quite rediculous now. I'm going to give it another 24 hrs for this person to sort out their problems before contacting the franchise company. I have received another refusal from an agent to deal with me without an ok from the company. I'm trying to spend around £20K. Absolutely ridiculous!

 

[Box Brownie]

Getting quite rediculous now. I'm going to give it another 24 hrs for this person to sort out their problems before contacting the franchise company. I have received another refusal from an agent to deal with me without an ok from the company. I'm trying to spend around £20K. Absolutely ridiculous!

Personally I would not have bothered to try (yet) another franchise agent and just gone directly to the Franchisor for their insight & advice. As mentioned by me and others the franchisees are strictly limited to their individual territories and would break such clauses at their peril

It might be that you are not the only one having issues now with your chosen franchisee but only the main Franchisor will know about an issue.

Best of luck with finding a resolution that works for you

 

[Mr Perceptive]

The Franchisor in the event of a breakdown of relationship of a customer with a franchisee will deal direct (they will pay a commission back to franchisee to keep them happy), it means you still get your goods, and the franchisee is not out of pocket.

 

[beyond the blue]

Update to those that replied, l finally managed to get a results from the chap without having to complain to the franchise company. It was Travel Counsellor 's.