Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Green Acres secures injunction against former franchisees

Green Acres secures injunction against former franchisees


27 June 2014 – Green Acres has succeeded in its bid to secure an injunction against former franchisees Garth Ruebe and Gwyneth Ruebe. The injunction prevents the Ruebes from providing lawn mowing services to Green Acres customers and from carrying on a lawn mowing service in competition with Green Acres.

The decision was made following arbitration under Barry Patterson, QC. While the details of the arbitration remain confidential, the award was entered as a judgement in the High Court in Auckland.

Mr and Mrs Ruebe operated a Green Acres sub-franchise in South Auckland from 26 January 2004 until 26 January 2014. When their sub-franchise agreement expired the Ruebes had a right to renew for a further ten year term, but chose not to exercise it. Instead they removed Green Acres livery from their vehicle, changed their telephone numbers, handed back the Green Acres operations manual and set up their own business. They contacted the customers they had acquired while they were Green Acres sub-franchisees and offered to continue servicing them.

Green Acres applied to the High Court for an interim injunction against the Ruebes pending arbitration. They lost that application in March this year, but His Honour Justice Lang directed that the dispute should be substantively resolved at arbitration and that the process should be expedited.

“We brought this case to protect our brand, our intellectual property, our franchise agreement and the businesses of 600 other people trading under the Green Acres name around New Zealand,” said Logan Sears, Green Acres CEO.

“The court order is consistent with Green Acres’ interpretation of the franchise agreement. When the agreement ends, it is Green Acres, not the franchisee, who retains the right to deal with customers previously serviced under its banner. It also confirms that an exiting franchisee may not provide services in competition to Green Acres.”

“Franchising is a major contributor to the New Zealand economy,” he added. “It promotes independent business ownership and business excellence. But for it to function effectively franchisors must have confidence that their agreements can be upheld. I hope that this result has set a precedent that will provide some certainty for the franchising sector.”

The Court order confirms that Green Acres may apply for damages and costs.

# ENDS #

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news