LM&TC terminates franchise agreement with Right Start Foundation

…sights breach of agreement

The Linden Mayor and Town Council (LM&TC) has moved to terminate the 2018 Linden Town Week ‘All Black’ concept party event franchisee agreement with Right Start Foundation, sighting breaches in the agreement. In August 2017, the Council reserved the right to host Linden Town Week 2018 in honour of the town’s 48th anniversary, with the aim of stimulating economic activities.
In a press release on Friday, the LM&TC stated that it was on this premise that it moved to award event franchises – one being the Linden Town Week ‘All Black’ activity. This was awarded on December 30, 2017, by way of the highest bidder process to Right Start Foundation who won at the tune of $3,600,000. The LM&TC noted that contrary to accepted bidding procedures, the winner was not required to make any payment on the day of bidding, however was given time to review the Event Franchisee Agreement and to offer in writing proposed amendments to the Council for considerations. “Upon signing the Franchisee is then required to pay 60 per cent of the bided sum within one week and the remaining 40 per cent on or before 31st January, 2018. Subsequently on January 12, 2018, after dispatching proposed amendments, the Council considered and Right Start Foundation proceeded to sign said agreement.”
As guided by Clause 4 (Franchise fee) of the Event Franchisee agreement, the first instalment should have been paid within one week of signing but was not upheld by the Franchisee. This led to the Linden Town Week Secretariat serving calls and letters as reminder of the party’s obligations, but went unanswered. This forced the Linden Mayor and Town Council during its January 24, 2018 statutory meeting to amend the clause that stipulated the 60 per cent and 40 per cent payment method to now reflect 100 per cent of full payment be made by already established January 31, 2018 deadline across the board, the release stated.
It added that in a recent turn of events, one day before the deadline, Right Start Foundation proceeded to collect its copy of the Agreement (despite being reminded in writing of its availability) which followed with a correspondence highlighting corrections and additional proposed amendments to the agreement with the absence of payment.
“To date, the Linden Mayor and Town Council has exhausted all options to amicably resolve this situation and was forced to terminate Right Start Foundation’s ‘All Black’ Concept Party Event Franchisee Agreement effective 1st February, 2018…”, the release said.