KB-2021-000741 - [2025] EWHC 2096 (KB)

The franchise model of JBL (including the predecessor business before the incorporation of JBL) has been going for just over 30 years. During that time, it is said that there have been about 1300-1400 franchisees. It is said without financial evidence that the business has been successful financially for the driving school. According to the unchallenged evidence of Mr Benson, there are currently over 100 franchisees of which “about 6 of those franchisees have been with us for 20 years or more, about 12 have been with us for 10 years or more, about 24 have been with us for five years or more and there are plenty of instructors that have been with us for three years or more.”: see Mr Benson’s witness statement at para. 5.

There is evidence, again without detail or precision, that there have been about 90 court cases against franchisees or former franchisees or guarantors over a period of 30 years. There is no breakdown of the cases. No detailed breakdown was provided despite requests from the Claimants’ solicitors. The Claimants say that this is a large number of court cases evidencing that there is something deeply wrong about the relationship and the aggressive approach of Mr Benson to his relationship with franchisees.

JBL says that this represents a small percentage of the franchises over the 30 years or more, and it reflects that a number of franchisees who were not observing their contractual obligations. When this occurs, JBL says that it has to enforce the agreement because it has legal rights to do so and for the good of the franchise as a whole in that a successful franchise depends on the obligations under the franchise agreements being honoured. JBL also says that if there was something so endemically wrong that most of the franchise agreements resulted in litigation, then the business could not have been successful and enduring. The Claimants say that the number of claims or Claimants in this action is not indicative of the number of dissatisfied franchisees. In order to terminate early or even to show dissatisfaction showed courage. The former brought the risk of counterclaims for lost profit for the remainder of the term as well as the ordinary risks and stresses of litigation. The latter risked, so it is claimed, being on the wrong side or worse of Mr Benson and/or not having new pupils being referred to them.

The franchise model for driving schools is prevalent in the industry including upon national schools such as the British School of Motoring, the AA Driving School and Red. Prior to 1993, Mr Benson was a franchisee at the British School of Motoring. Typically, the franchisee owns the trademark, in this case the Benson School of Motoring. The arrangement is that the franchisor provides to franchisees advertising material for distribution and provides guidance to assist with the business of the franchisee and assists in connection with publicity requirements. The franchisor refers pupils to franchisees, and under the instant franchise agreements, there are non-guaranteed numbers of referrals which a franchisee can expect to receive. The agreement states that one of the factors which will determine whether pupils are referred is whether the franchise is operating the franchise in accordance with the agreement.