Franchise sales


Franchise sales usually refer to the current numbers of franchises sold by a specific business (for example a fast-food chain), although it may also refer to the actual volume of sales generated by franchises of a particular business or in a particular sector. Strong franchise sales may indicate economic growth since when a party purchases a franchise it is essentially investing in a business.

However, from the purchasing party’s point of view it is important not to confuse a franchise purchase with an equity investment. When a party enters into a franchise agreement it does not own any part of the existing company. Instead it is acquiring the rights to use assets (mostly intellectual property rights) owned by the company. It also has a certain guarantee from the company that it will provide the party with services and support. The agreement usually allows the franchisee to use the name and products of the franchisor, as well as the franchisor’s professional know-how.

If you are considering adding to the franchise sales statistics by purchasing your own, it is crucial that you examine the terms of the contract, the expected investment and the risk associated with owning your own franchise. Some franchise owners have become very successful, whilst others have found themselves unhappy with the terms of the contract after signing it. This may be due to a lack of research done regarding the level of risk associated with owning a franchise of the terms of the contract. Hence the importance of using a qualified, specialised solicitor.

If you would like to obtain legal advice on franchise sales, Contact Law can put you in touch with a local Franchise Solicitor free of charge. So, if you have any questions or would like our help in finding local Franchise Solicitors please call us on 0800 1777 162 or complete the web-form above.

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