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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a franchise with a territory that is defined by a set

Resolved Question:

I have a franchise with a territory that is defined by a set number of postcodes. There is a clause in the contract that states that I can only carry out my business within the territory.
For the last nine years they have been sending me leads which are outside my territory.
Is the clause in the contract still valid/enforceable? They now want me to work only within the assigned territory which I believe makes the business unviable.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
No. If the contract has been breached by them and they accept this then the clause is no longer valid. its been breached by them sending you leads and you accepting those leads.
If there has been a breach and they have accepted it, its what is called affirmed and they can not now change their mind,
Therefore on this basis they can't now pursue it.
Can I clarify anything for you about this today please?
Alex
Ash and 2 other Law Specialists are ready to help you
Customer: replied 2 years ago.

Thanks for the response and I think you have answered the question but can you just clarify what breached means.

I don't want to cancel the contract but simply to continue to work with my existing customers that reside outside of my territory (postcode area) without the franchisor using this as an excuse to terminate our agreement.

I will do the "rating stuff" this evening.

Expert:  Ash replied 2 years ago.
Yes of course. Technically you breached if you operated outside the area. But they provided leads outside so they breached it.
So it may have been breached but they agreed to it.
Does that help?
Alex
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex