Aug 31, 2015 - Blog by |

Gas Station Franchise Termination — In Swaziland

Fuel Franchisor: “Your gas station franchise is terminated and you must vacate the premises immediately.”

No; this was not a petroleum franchisor in the USA, but a gas distribution franchisor in Swaziland.

After the gas station franchise termination in Swaziland, the franchisee lawyer for the gas station, in a discussion with the press and in his pleadings, made arguments almost identical to those that would have been, and are made, by franchise lawyers in the USA:

“He is arguing that he feels like he has been given a raw deal in the sense that he is now made to lose the business and property without compensation.”

“The Supreme Court merely made an assumption that the franchise agreement was for a three year term ignoring the words used in the clause and thereafter ordering the ejectment of the applicants without compensation.”

The franchisee’s lawyer said in an affidavit: “The court failed to an interpretation of Clause 6.1 of the agreement.”

“He spent E6.5 million in the business so he was pleading with the court to let him continue operating the filling stations. He said if the court ruled in favour of Galp Swaziland, he should be compensated or at least be given an opportunity to sell his businesses.”

“He said the respondents of the matter displayed a lackadaisical attitude in this regard because they believed the applicants had no ownership over the business but they were just mere managers of the filling stations they operated.”

“He said this should not be allowed in the country as it was tantamount to deprivation of property which, he alleged was not in the spirit of the constitution of the country, which guaranteed every person’s property rights.”

 

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