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Franchise Agreements

Franchise Agreements

The advantages of owning your own business are obvious, but so too are the risks and that’s where franchises can be more appealing.

Need some assistance with a Franchise Agreement?

The number of franchisee-owned business is increasing and they are now thought to contribute over £15 billion to the UK economy operating across a range of sectors.

The advantages of owning your own business are obvious, but so too are the risks and that’s where franchises can be more appealing.

The franchisee is taking less of a risk than starting their own business and failure rates are much lower in franchises than in SME’s generally. This is because they are operating under an established and proven business model and supplying or producing a tested brand name.

Franchising is essentially the permission given by one person, the franchisor, to another person, the franchisee, to use the franchisor’s name, trade marks and business system in return for an initial payment and further regular payments.

Each business outlet is owned and managed by the franchisee. However, the franchisor retains control over the way in which products and services are marketed and sold, and controls the quality and standards of the business. 

The frachisor retains this control by having a detailed franchise agreement. Usually the franchise agreement is drafted heavily in favour of the franchisor and cannot be amended greatly, but it is important for the franchisee to fully understand the prospective liabilities and obligations that they are entering into.

Our specialist commercial lawyers can review and advise you on all documents needed when entering into a new franchise agreement.

If you are considering buying into a franchise, or already own one and need some advice, talk to our team who specialise in franchise agreements.

I would like to thank you for your prompt and efficient help; it was appreciated.

 

29/03/2018
Stewart Matthews
Joint Managing Partner & Head of Company Commercial
Fasil Hussain
Solicitor - Company Commercial