Franchising

Franchising is one of the most popular ways for businesses to expand quickly and cheaply. It is estimated there are around seven hundred and fifty franchise businesses operating throughout the UK, translating into many thousands of franchise operators across the country. Because franchised companies share responsibility between the franchisor and the franchisee, the legal agreements need to be drafted more carefully than for some other forms of business agreement, to ensure a good working relationship between the parties. For example, they will include branding agreements, funding agreements, profit sharing agreements, health and safety liability, property law, employment law, competition law considerations and termination arrangements.

You should always look at the level of experience your lawyer has in franchise agreements. Lawyers operating in this sector should have a good understanding of the commercial context of your business, and be able to advise on the viability of either franchising your business, or of the franchise opportunity you are considering. Franchise lawyers will be able to also assist where disputes do arise, and will have experience of the most appropriate package of measures to follow, for example, with considered negotiation, and Alternative Dispute Resolution (ADR) routes such as mediation and arbitration. Franchise arrangements can be complex, and a good understanding of the accounts systems used for franchise operations is often required in order to properly resolve disputes. An experienced franchising legal advisor should be able to give an initial consultation where they can outline businesses or business arrangements they have worked on previously that share some similarity with yours.