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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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If I launched and built a franchise (in NYC, New York)

Customer Question

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
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years 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 2 years 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 2 years ago.
And you want to take it with you individually?
Customer: replied 2 years 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 2 years 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?
Customer: replied 2 years 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 2 years ago.
There is no set procedure, its a matter of contract. If its a parent Co then yes it owns it sadly.
Customer: replied 2 years 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 2 years ago.
Yes because there is an implied duty go good faith. You can take it but risk being sued.
Does that help?
Expert:  Ash replied 2 years ago.
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