Seven years after their Vodafone franchise was terminated following allegations of dishonesty, Grant and Linda Knox were in court unsuccessfully seeking damages in a claim that Vodafone did not act reasonably when terminating their franchise.
They claim Vodafone jumped the gun with termination less than four months into their franchise, allegedly acting at the behest of interests associated with former franchise holder GSM Retail Ltd seeking to recover its franchise.
The High Court was told GSM Retail previously held franchise rights for Vodafone stores at major airports: Auckland, Wellington, Christchurch and Queenstown. Vodafone his since re-branded as One New Zealand.
With GSM’s rights up for renewal in 2017, Vodafone signed up Grant and Linda Knox as replacement franchisees. At the time, they were GSM employees. Within weeks, GSM management contacted Vodafone reporting allegations of theft by Linda Knox; misuse of GSM Prezzy cards.
Evidence was given of Ms Knox contacting Vodafone, confessing to having ‘fucked up’ while working for GSM and tearfully exonerating her spouse from any involvement.
At a subsequent meeting between Vodafone and the Knoxes, she did not deny the earlier thefts. A pre-prepared letter was handed over, immediately terminating their Vodafone franchise. Interests associated with GSM were appointed as replacement franchisee.
Ms Knox was subsequently convicted of theft.
Associate judge Taylor ruled immediate termination was justified. The franchise agreement allowed termination for any fraudulent or unethical behaviour.
Ms Knox said her criminal behaviour was unrelated to their Vodafone franchise; it was an employment matter between her and former employer GSM.
Judge Taylor ruled Vodafone had not acted unreasonably or in bad faith.
Ms Knox’ prior dishonesty was relevant to her ongoing suitability as a franchise holder.
One New Zealand Group v. Redfone Ltd & Knox – High Court (22.03.24)
24.073