Chicken Land emerges in Nando�s franchise war
Mpho Mokwape | Tuesday October 27, 2015 15:13
On Thursday the CoA will give judgement in a case in which Gampone, Nando’s and its franchise holder, Ibrahim Khan have been entangled in a war over control of the chain restaurant’s Palapye outlet. The war is over terms of the franchise agreement.
Gampone, the only Motswana with a Nando’s franchise, won the battle at the High Court before Nando’s took the matter to CoA.
Recently, when the matter went before the CoA, her legal team said Gampone was given a renewal licence by Chicken Land South Africa to continue operating the business.
Senior counsel, Andrew Redding explained that Chicken Land, which was the founder for the Nando’s outlets, had given Gampone the franchise.
“When the franchise was about to expire, my client applied for the renewal as she has always looked for a long time business and Chicken Land gave her just that, but since Nando’s wanted her out, they tried all to wrestle the franchise out of her,” he said.
Redding said the contention by Nando’s that Nando’s and Chicken Land did not permit any sub-franchise was not true.
He argued that the sub-franchise has always been possible between the two and that was why Chicken Land gave Gampone hope when Nando’s failed to do so.
Nando’s advocate, Sidney Pilane disputed Redding’s argument saying that there was no way Nando’s and Chicken Land had any provisions for a sub-franchise.
He said even if there was such a provision, Chicken Land did not seek permission from Nando’s to sub-franchise to Gampone.
Pilane argued that as such there was a breach of agreement and that Gampone had continued operating even after her license had expired.
“Chicken Land South Africa and Nando’s do not permit any sub-franchise and as such Gampone had no right to continue trading and using the Nando’s brand, her licence has long expired,” he said.
He said the food chain was seeking a declaratory order for the expiration of the franchise agreement with the contention that the franchise agreement with Gampone has long expired and that the franchise was only meant to run for 10 years. The legal battle started when the fast-food giant filed an urgent application at the High Court demanding Gampone and her company, Jago Productions, stop using the Nando’s brand.
Khan and Nando’s argued that the franchise agreement had expired.
Nando’s Holdings wanted to pass the franchise to the Khan family.