Franchise lawyers

 

A franchise is a business agreement between two parties that allows one of the parties (the franchisee) to market a product or service under the trademark of the other party (the franchisor).

Franchising is a tool used by businesses to market or distribute their products or services. The franchisee must pay a fee to the franchisor and the franchisor will have continuing obligations towards the franchisee throughout the life of the franchise.

The franchise agreement

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 franchise agreement to get a better understanding of how the franchise works
  • Explain what your rights and obligations will be

This franchise agreement regulates many aspects of the on-going operation of the franchise and will shape and limit your freedom in operating the business. It can also impose substantial on-going costs on the franchisee.

Using a franchise lawyer

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. When problems do arise, franchise lawyers can advise you on your rights and on the best methods to resolve the situation.

For more advice on purchasing a franchise, see our information page on buying a franchise.

Are you looking for a lawyer who specialising in franchising? Franchising is a niche area of law and is not a common area of practice for most solicitors. Contact Law works with a number of solicitors whose specialist area is franchising who we can recommend for you based on the requirements of your case. Please call us on 0800 1777 162 or complete the web-form above.

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