Franchise holder Water Babies International’s foray into New Zealand was not a resounding success but it hotly pursued Kelly Williams and cousin Silvana Tizzoni to protect intellectual property attached to its swim franchise.
Based in the United Kingdom, Water Babies extended its infant and toddler swim system to New Zealand with a franchise run by Kelly Williams out of Wellington. She later set up a parallel Water Babies programme in Auckland, with the informal consent of Water Babies International. Apparently unprofitable, the franchise ended in 2019 with Ms Williams left owing Water Babies International substantial franchise fees. She then started working for a similar business based in Auckland called Swim Baby, set up by her cousin Silvana Tizzoni.
The High Court was told Water Babies investigators found Ms Tizzoni’s Swim Baby programme offered similar features to the Water Babies programme. There was evidence the Water Babies address list was used to approach potential Swim Baby clients. Swim Baby customers were told Water Babies was no longer operating. Ms Tizzoni booked pool space and times matching Water Babies’ previous operations in both Auckland and Wellington.
Justice Doogue granted Water Babies International a temporary injunction, blocking Swim Baby’s new operations in Wellington, but not Auckland. Ms Williams agreed when signing her Water Babies’ franchise agreement not to start a rival business using franchise material for her own use. Water Babies International alleges Ms Tizzoni acted in cahoots with Ms Williams, knowingly breaching the franchise agreement. The extent to which the franchise agreement was breached and the amount of damages payable, if any, requires a full trial.
Looking at wording of Water Babies franchise agreement, Justice Doogue said both Ms Williams and Ms Tizzoni are free to teach in Auckland, provided they do not use Water Babies’ teaching format.
Water Babies International Ltd v. Williams – High Court (10.06.20)
20.102