Keeping a Well-Known Restaurant Franchise Out of Court

Timely intervention and mediation kept a restaurant business going and helped it to grow.

Challenge

Asserson was instructed by the Israeli franchisee of a world famous international restaurant chain. The franchisee was subject to an LCIA claim for a mandatory injunction, damages worth over $15 million, and forfeiting the franchise agreement to run 50 restaurants. The franchisee was subject to a franchise agreement which contained onerous terms which were generally very restrictive and damaging to its business.

Inspiration

Asserson successfully prevented an interim injunction being obtained by the franchisor and submitted a comprehensive defence to the claim. By proposing early mediation, the litigation process which threatened to overwhelm and destroy our client’s business, was stopped, and then reversed. A tough interim agreement was reached, enabling our client to gain a dominant position in the negotiations, and preventing progress of the litigation in the interim.

Result

Using leverage gained by the interim agreement, Asserson’s client, the franchisee, persuaded the claimant franchisor to abandon Israel for 5 years; to allow Asserson’s client to double in size by amalgamating with another chain, thus enabling it to build a dominant position in the territory; and dropped the litigation.

Dispute Resolution Case Studies

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Dispute Resolution Client
Cannot recommend Asserson highly enough. Good, solid, practical advice and an extremely efficient service. I would not hesitate to use them again.
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Dispute Resolution Client
We are delighted by the professionalism and support we received.
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Legal 500
A long and successful track record of acting in UK-based arbitration, offering a unique ability to service the jurisdiction while based in Israel.
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Arbitration Client
You have done an amazing job... I wish to thank each one of you for the professionalism, dedication, intensive work during nights and weekends and mostly for the pleasant and humble attitude.
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Legal 500
An excellent niche firm… particularly adept at helping clients with really significant commercial or regulatory problems.
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