Delhi High Court Restrains Ex-Franchisee From Using Toni & Guy Brand Pending Arbitration

On 26 May, the Delhi High Court granted interim protection under Section 9 of the Arbitration and Conciliation Act, 1996 and restrained a former franchisee from using the “Toni & Guy” trademarks and associated intellectual property pending arbitration.

Justice Mini Pushkarna held that a valid arbitration agreement governed the dispute and protected the franchisor's brand rights during the pendency of proceedings and allowed the petition filed by Profile India International. The Bench observed:

“Considering the submissions made before this Court, till the next date of hearing, the respondents are restrained from operating any Salon bearing the mark 'Toni & Guy' or using the operating manual, system, 'Toni & Guy' Network, license rights or any other trade name, logos, devices or insignia, associated with the petitioner's mark, or from using in any manner, any sign board, or stationary, bills, etc., with the brand name/trademark, i.e., 'Toni & Guy'.”

The dispute arose from the operation of a Toni & Guy salon outlet in Prayagraj, Uttar Pradesh. Profile India International acts as the master franchisee of the internationally recognised Toni & Guy hairdressing brand in India and Nepal, holding rights to use the mark and grant sub-franchises.

On 12 December 2023, Profile India International entered into a Sub-Franchise Agreement with SS Brothers Associates, permitting it to operate a Toni & Guy salon in Prayagraj. The agreement required payment of a monthly management services fee of Rs.59,000.

Profile India International alleged that SS Brothers Associates stopped paying the fee from July 2024 but continued using the brand's trademarks, operating system, and intellectual property. It also alleged continued operation of the outlet under the “Toni & Guy” name despite repeated demands to stop.

The master franchisee terminated the Sub-Franchise Agreement through a notice dated 3 February 2025 and directed the franchisee to cease use of the brand and clear outstanding dues. It then approached the Delhi High Court under Section 9 of the Arbitration Act, seeking urgent interim protection against continued misuse of its intellectual property.

The Court noted that Clause 29 of the Sub-Franchise Agreement contained a valid arbitration clause and that Clause 29.3 conferred exclusive jurisdiction on courts in Delhi. It held that the dispute fell within arbitration and that Delhi courts had jurisdiction to entertain the petition.

Accordingly, the Court restrained SS Brothers Associates from operating any salon under the “Toni & Guy” mark or from using its trademarks, logos, operating manuals, network, licence rights, signboards, stationery, bills, or any other associated branding. It clarified that the respondents remained free to carry on their salon business under any name that was not deceptively similar to “Toni & Guy”.

The Court listed the matter for further hearing on 8 October 2026.

Appearances for petitioner (M/s Profile India International): Advocate Vishesh Kanodia.