Facts
A franchisee opposed an order that had been issued by the Court of Como, requiring it to indemnify its franchisor for damages in connection with the termination of a franchise agreement.The franchisee’s opposition was based solely on a claim for a credit to the value of the sale price of the point of sale furnishings and equipment. The franchisee maintained that the credit had accrued on the basis of a provision of the franchise agreement which stated that “in the event of termination of [the agreement] for any reason… the franchisee expressly undertakes to resell all of the equipment to the franchisor on request”.
The franchisee stated that the franchisor’s refusal to buy back the equipment on termination of the franchise agreement – which in this case was based on the franchisee’s decision not to carry out its activity in competition with surrounding points of sale – was contrary to good faith. It asked the court to… read full article.