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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9860
Experience:  I have been practising for 30 years.
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I'm a driving school instructor I would like you to look at

Resolved Question:

Hi,
I'm a driving school instructor I would like you to look at my franchise agreement to see if there's a way i can get an early release with out penalties.
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Are you able to attach the agreement please?

On what basis do you want to get out of the agreement? Has the franchisor failed to do something in the agreement?

Customer: replied 1 year ago.
when I first joined drive dynamics the reason I went with them was I was assured that if I had a problem with a car i would get another sent down .
I have had a few problems with there car this year I have had clutch issues which have left me out of pocket on more than one occasion
Customer: replied 1 year ago.
is that another 44.00 on top of 3 or just another 6.00
Expert:  F E Smith replied 1 year ago.

it is an extra fee of 44 but you get as long as you like on the telephone. Let me look at the doc please and let me know if you want me to call.

Customer: replied 1 year ago.
sorry I cant afford an extra 44.00
Expert:  F E Smith replied 1 year ago.

I have looked at the document now.

Clause 3.1 There is an initial period of 12 months starting from 17 March 2014.

Under clause 3.2 the agreement rolls over subject to 3 months notice, subject to clause 19.

Clause 19 then refers to clauses 15, 17, 20, 21, 23, 25, 28, 32, 33, 34, which continue.

15 you’re not allowed to use intellectual property, quite normal

17 you’re not allowed to use any of the confidential information, quite normal

20 I will come back to.

21 you will pay their costs for non-compliance with the agreement, quite normal

23 data protection, nothing to worry about

25 third-party rights, nothing to worry about

28 interest, normal

32, 33 34 normal but I don’t know why they referred to them in the body of the document. They are standard provisions.

I said I would come back to clause 20. This in effect stops you carrying on the same business or working for a competing business for six months after termination. Courts don’t like restrictive covenants in employment contracts or franchise agreements and it’s debatable whether a six-month clause within the Territory which is defined as the area allocated to the franchisee by the franchisor but is not actually defined and which therefore it should be. However it does say at clause 22 that this is the entire agreement and hence, if there is no Territory allocated in the agreement, then they cannot rely on clause 20 to stop you working in the Territory when there is no definition of territory in this agreement.

Can I clarify anything for you? Please rate the service positive so that I get paid. We can still exchange emails. Best wishes. FES.

Customer: replied 1 year ago.
sorry I am confused is that a yes or no in very simple terms
Expert:  F E Smith replied 1 year ago.

You can get out under clause 3.2 by giving three months notice. Its subject to all the other criteria I mentioned.

F E Smith and other Law Specialists are ready to help you
Customer: replied 1 year ago.
ok thank you
Expert:  F E Smith replied 1 year ago.

I am glad to help. It’s a case really of just reading the relevant clauses in detail in ordinary plain English.

If you do give three months notice to get out, it’s only going to be problematical if you want to carry on doing the same kind of work.

If you want to leave and become a postman, then you can just give three months notice