By Gordon Drakes, Co-head of Franchising and Distribution, Fieldfisher
The High Court has recently handed down judgment in Gibbons v Gravity Franchise Ltd & Ors [2026] EWHC 2089 (Comm), a relatively rare reported franchise dispute arising from allegations that a franchisee had been induced to enter into a franchise and lease arrangement by a series of misrepresentations concerning project costs, profitability, financing support and contractor recommendations.
The case arose from the failure of a Gravity-branded indoor entertainment park in Warrington and ultimately resulted in the franchisee’s claims being dismissed in their entirety, with judgment also entered on Gravity’s counterclaim.
The case background
The claimant acquired a Gravity franchise in 2019 and later entered into a lease for premises in Warrington. Before signing, he received financial projections, development cost estimates and other information relating to the proposed venture.
He was legally represented throughout the transaction, undertook due diligence and signed documentation containing a number of acknowledgements, disclaimers, non-reliance provisions and entire agreement clauses.
The business subsequently encountered significant difficulties. Following cost overruns and operational challenges, the claimant alleged he had been induced into the transaction by a series of false statements about development costs, profitability, financing support and the competence of Gravity’s preferred contractor. He sought damages of approximately £3.4m.
• To read the full article, view Franchise World Autumn 2026 issue, page 51.