Getting franchising legal advice


If you are considering franchising, legal advice should be sought at an early stage. Franchising essentially involves a person (the ‘franchisor’) granting another person (the ‘franchisee’), the right to trade under the franchisor’s name and to make use of the entire package offered by the franchisor. So, for example, if you bought a fast-food franchise, you would have the right to make and sell all the food that the franchised business sells and to market it under their established brand. The franchisor will provide you with all the training and ‘know how’ that will be necessary to run the business. They will also provide ongoing support on a basis determined by both parties in the franchising agreement.

In return, the franchisee will pay the franchisor an initial fee to acquire the franchise. In addition to this fee, the franchisor will also receive a ‘management service fee’; this is normally based on a percentage of the annual turnover. This whole agreement between both parties will be recorded in a license agreement or franchising agreement. Before entering into any agreement concerning franchising, legal advice should be sought in order to help negotiate, draft and check any agreement; license and franchise agreements can often contain a range of complex clauses.

If you are commencing a business through franchising, legal advice in relation to general business setup and commercial advice can also be useful. A solicitor can help you with the legal aspects of employment law, health and safety law and all other business-related legal advice you may need.

If you would like to obtain legal advice on franchising, Caven can put you in touch with a local specialist franchising solicitor free of charge.  So, if you have any questions or would like our help in finding local franchising solicitors please call us on 08001 221 2299 or complete the web form above.

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