Jimmy Desai reports on Green Thumb Ltd and data transfer clauses in contracts
The business of Green Thumb (UK) Ltd (the franchisor) consisted to a large degree of granting franchises to franchisees. Grow With Us Ltd (the franchisee) wanted to extend its franchise agreement for a further period of seven years, as it was entitled to do under the terms of the agreement provided that the franchisee had complied with the terms of the agreement ( All ER (D) 435). However, the franchisor refused because, among other things, the franchisee had not provided it with the franchiseeâ€™s customer details as it was obliged to do under the agreement. The franchisee argued that it would have been in breach of the agreement and the Data Protection Act 1998 (DPA) had it done so.
Clause 5 of the agreement contained the ...