O'Brien's group wins case

O'Brien's Sandwich Bars has won damages in a case against two former franchisees.

O'Brien's Sandwich Bars has won damages in a case against two former franchisees.

The group took legal action after two individuals turned their O'Brien's outlet in Singapore into a "Munch" cafe. Chief executive Fiacra Nagle said the two - Edwin Ng Lim Yeong and Cindy Hou Sook Min - had simply took down the O'Brien's signage and kept the store layout and menu essentially the same.

The Singapore High Court has ruled in favour of O'Brien's, awarding undisclosed damages and costs against the defendants.

They also agreed to comply with all the terms of the franchise agreement. That includes changing the fit-out to ensure the restaurant "no longer has the look and feel" of an O'Brien's outlet. Mr Nagle described the court action as a "key case" for the Irish group.

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"It's the first time we have had to take this type of case, and it was important that we won," he said. "While court action is a last resort for us, it is imperative that our brand and concept is protected for the benefit of both the franchiser and our franchise partners who have invested in our brand."

He added that the defendants were "people who came to us to learn the business and build on the success we have achieved in markets around the world" only to then tear up their agreement with the O'Brien's group.

Mr Nagle said there were standard non-compete arrangements in place for people who wanted to terminate franchises with the company.

O'Brien's operates 11 outlets in Singapore under the control of English accountant Hugh Hoyes-Cock.

Dominic Coyle

Dominic Coyle

Dominic Coyle is Deputy Business Editor of The Irish Times