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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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If I launched and built a franchise (in NYC, New York)

Customer Question

Hello,
If I launched and built a franchise (in NYC, New York) of a young startup, that was founded and registered in London UK in 2013, (receiving very little help and zero capital from the company in London), and wanted to leave the said franchise and company, taking the local NYC mailing list with me, and using said mailing list for a new project, would that be illegal?
Even if I had not signed a contract forbidding such an action?
I hope I've been clear..
Many thanks
Annie
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello Annie my name is ***** ***** I will help you.
For now please let me know whether the company belonged to the company?
Customer: replied 1 year ago.
Hi Alex,
If I understand your question correctly, then I think so, yes, the NYC franchise belongs per se to the company that's registered in London, UK.
Expert:  Ash replied 1 year ago.
And you want to take it with you individually?
Customer: replied 1 year ago.
I would like to take the NYC mailing list that I built, yes. And create a new event (this is an events company) that has a similar concept
Expert:  Ash replied 1 year ago.
Ok. Sadly you won't be able to without permission. This is because it belongs to the Company and not you. There is an implied term in law of good faith with your post there. if you leave and take it with you, it would be theft as it belongs to the Company.
It is an asset and you could be taken to Court for it. In any event if you take it, use it and if taken to Court you could be sued for loss and damage.
You need permission to use it. I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.
Can I clarify anything for you about this today please?
Alex
Customer: replied 1 year ago.
Ok thanks.
Is there a procedure that the Company must go through to set up an official franchise? I ask because I wonder whether they simply call my operation a 'franchise', perhaps without having followed a standard procedure..
?
However I assume that since the NYC biz operates under the same name, then they/the Company, automatically 'own' it ?
Expert:  Ash replied 1 year ago.
There is no set procedure, its a matter of contract. If its a parent Co then yes it owns it sadly.
Alex
Customer: replied 1 year ago.
OK thanks. Last question -
If the NYC team haven't signed a contract/ nor a non-compete clause, are we still nevertheless liable if we set up a competitor biz, after leaving the Company?
Expert:  Ash replied 1 year ago.
Yes because there is an implied duty go good faith. You can take it but risk being sued.
Does that help?
Alex
Expert:  Ash replied 1 year ago.
If this answers your question could I invite you rate my answer before you leave today.
If the system won’t let you please click reply.
Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/

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