Franchising

Are you:
 
  • an existing franchisor?
  • looking to grow your business by franchising?
  • looking to become a franchisee?
 
If so, our specialist franchise team can help. 
 
We are professional advisers affiliated to the British Franchise Association, which means we have a proven track record in giving legal advice to the franchise sector. We also give presentations at franchise exhibitions to prospective franchisors and franchisees.
 
Today, the franchise sector generates an annual UK turnover of over £12billion. Banks with specialist franchising departments report they are still keen to lend to people taking on a franchised business, as it is seen as less risky than an entirely new venture. Many franchisees feel that being part of a franchise network gives them an advantage in the current economic climate, compared with non-franchise businesses operating in the same sector.
 
“Franchising” means different things to different people - in “business format franchising”, the Franchisor allows an independent person or company (the Franchisee) to use its trademarks, branding, business methods and know-how to run their own business. In return, the Franchisee usually pays an initial fee for buying into the business and ongoing fees for use of the brand and the support given by the Franchisor.  In many franchises, ongoing fees are a percentage of the Franchisee’s turnover or are a combination of a percentage fee and a mark-up on sales of the Franchisor’s products to the Franchisees.
 
If you are a thinking of growing your business by franchising, we can help you assess whether franchising is right for your business, advise on the steps you should take and deliver the legal documentation needed to protect your brand and reputation, including the detailed legal agreement with the franchisee.
 
If you are looking to take out a franchise, we can report to you on the proposed franchise agreement and other legal documentation, highlighting any issues for you to consider, so that you can take an informed view on whether to proceed. We can also advise on related matters such as the leasing of trading premises and the taking on of staff.
 
We also advise on disputes between franchisors and franchisees. Here, our understanding of how the franchise sector works is invaluable in ensuring, as far as is possible, a speedy and cost-effective resolution.