Palapye woman loses Nando�s franchise

Mpho Mokwape | Monday November 2, 2015 16:02

 

The Court of Appeal (CoA) on Thursday gave Nando’s Holdings Botswana and its franchise holder, Ibrahim Khan, the Palapye outlet.

Nando’s has been entangled in a war with Gampone over control of the fast food outlet. The war was over the terms of the franchise agreement.

Giving judgement, Justice John Foxcroft said the franchise agreement entered into between Nando’s Botswana and Gampone on December 6, 2011 expired on March 24, 2014.

He explained that neither Gampone nor her company had any right or option to renew such an agreement.

“Any rights held before the expiry date had lapsed. Therefore, Nando’s had the right to take their brand back,” he said.

Foxcroft said since the agreement ended and that for any renewal to have taken place once the New Franchise Agreement came into existence, prior consent ought to have been given.

He pointed out that it was unthinkable that Nando’s would have sought the permission after June 20, 2014, which was the operative date of the New Franchise Agreement when litigation was ongoing since February 28, 2014.

He held that the New Master Franchise agreement that came into force used by Gampone and her company was without merit since it prohibited Nando’s Botswana from entering into a sub-franchise agreement at all without a consent.“The trial court declined to have regard to any provisions in the New Franchise Agreement in light of its findings that it was not part of the evidence before it,” he said.

He further explained that though there was a sub-franchise agreement between Gampone and Chicken Land, which according to the documents provided for such, there was no consent given.

Meanwhile, during the appeal the chain restaurant was seeking a declaratory order for the expiration of the franchise agreement with the contention that the agreement with Gampone 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 that Gampone and her company desist from using the Nando’s brand. Khan and Nando’s argued that the franchise agreement had expired. Nando’s Holdings wanted to pass the franchise onto the Khan family.