Simon Gibbons v Gravity Franchise Limited & Ors

Facts

The First Defendant operates indoor entertainment parks under the Gravity brand through franchise agreements; Mr Jenkinson, the Third Defendant, is a director of the First and Second Defendants. In June 2019 Mr Gibbons, having expressed interest in taking a franchise, was sent a Gravity Franchise and Investment Prospectus containing a disclaimer and a capital range of £1.2m to £1.8m. He signed a Letter of Intent on 27 September 2019, acknowledging that investment could be as much as £1.5 million and might exceed it, and that he was not relying on any statement made by Gravity. Having taken legal advice, and having asked for but not received written assurances that capital costs would not exceed £1,405,115, he signed the Franchise Agreement on 20 December 2019 and a Lease on 20 July 2020 for premises known as Gravity Warrington. Costs rose after the covid lockdown, the park opened in October 2020, and C&G Leisure Limited was placed into administration on 12 August 2022. In May 2025 Mr Gibbons issued a claim through the CNBC seeking some £3.4 million, and Amended Particulars of Claim filed on 3 July 2025 alleged five pre-contractual misrepresentations put fraudulently, negligently or innocently. He did not answer the Defendants' Part 18 requests, and all three Defendants applied to strike out the claim and for reverse summary judgment. The Gravity Defendants also counterclaimed for £849,288.07.