Franchises can be an excellent business choice, with many advantages. However they can also be complex arrangements. Despite not being governed by any specific franchise laws, franchising can be complex by way of the fact that it is governed almost solely by the franchise agreement. The franchise agreement thus assumes central importance and the terms and conditions contained within it, and their interpretation can become sore points of contention between the franchisor and franchisee. For this reason, both franchisees and franchisors should retain specialist franchise lawyers throughout the life of their franchise investment.
When considering entering a franchise arrangement, franchise lawyers can review the agreement to get a better understanding of how the franchise works and what your rights and obligations will be. This franchise agreement regulates many aspects of the ongoing operation of the franchise and will shape and limit your freedom in operating the business. It can also impose substantial ongoing costs on the franchisee.
Franchise lawyers can assist you in negotiating the terms and conditions of the franchise agreement. You do not have to accept the terms as they are initially presented by the franchisor. The franchise agreement will have been carefully drafted by the franchisor's solicitors to reflect the franchisor's best interests. You are entitled to negotiate the terms on which you enter the franchise relationship. Franchise lawyers can assist you to enter the franchise relationship on terms more favourable to you.
Once a franchise agreement is successfully entered into and you have commenced operations in your business, it is prudent to retain the services of franchise lawyers to consult in relation to actions that you take throughout the life-cycle of the business. In this way you will avoid unwittingly breaching the terms of the franchise agreement and the damage to the franchise relationship this could cause, not to mention costly litigation and liability for damages. Where problems do arise, franchise lawyers can advise you on your rights and on the best methods to resolve the situation.
If you would like to obtain legal advice on franchising, Caven can put you in touch with local specialist franchise lawyers free of charge. So, if you have any questions or would like our help in finding local specialist franchise lawyers please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 02/03/2010