Franchising is essentially the permission given by one person (the franchisor) to another person (the franchisee) to carry on a particular business using a specific name belonging to the franchisor. There will be a Franchise Agreement which will impose restrictions on the parties. In return for payment of fees periodically and acceptance of those restrictions, the franchisee will be given the right to use the franchisor’s product or business idea and also its general style, including intellectual property rights (such as copyright and trade marks) and will generally be obliged to adopt the franchisor’s style.
Each business outlet is owned and managed by the franchisee. However, the franchisor retains control over the way in which products and/or services are marketed and sold, and controls the quality and standards of the business, once again through the Franchise Agreement and an Operations Manual.
Whether you are a potential new franchisee wondering whether a franchise opportunity is suitable for you, or an existing franchisee looking for advice on a current arrangement, we hope the information set out below is useful. Please contact the commercial law team at Lanyon Bowdler with any further enquiries you may have.
In order to decide whether taking on a franchise is the best decision for you, it is essential that you have some understanding of the perceived advantages and disadvantages of franchising. The advantages can include:-
The potential disadvantages can include:-
There are many factors you will need to take into account when choosing a franchise. These can include:-
For franchisees it is important to understand the consequences and implications of entering into a Franchise Agreement and to make sure that the franchise being granted accurately reflects your commercial understanding. In particular, Lanyon Bowdler can advise on and undertake the following:
Before making any commitment, or paying any money, it is essential that prospective franchisees make the right choices and seek the correct advice from solicitors who understand the complex commercial and legal issues involved in franchising. At Lanyon Bowdler our commercial law team has that experience. For more information on franchising or if you would like us to review a Franchise Agreement on a fixed fee basis please contact us.
Almost any business is capable of being franchised, given the right advice at the right time. Whether you have a successful existing business which you wish to expand or you are a newly formed business or existing business with little of no experience in the proposed industry we hope the information set out below is useful. Please contact the commercial law team at Lanyon Bowdler with any further enquiries you may have.
In order to decide whether franchising your product or business idea is the marketing arrangement for you, it is essential that you have some understanding of the perceived advantages and disadvantages of franchising. The advantages can include:-
The potential disadvantages include:-
From a franchisor’s perspective it is important to ensure that your business format is protected and that you have sufficient control over your franchise network. It is important to remember that the Franchise Agreement itself is not only a legal document but is also a selling document which should not be off-putting to a prospective franchisee. It is important that you seek advice from solicitors with experience in franchising arrangements who can ensure that the Franchise Agreement will be appropriate. In particular, Lanyon Bowdler has the experience to advise on and undertake the following:
As there are no specific franchising laws in the UK legal issues can arise if legal advice is not taken. The most common are:
If you are propose to engage in any of the above then it is vital that you seek legal advice well in advance.
There are a range of marketing arrangements using representative intermediaries open to you if you want to market your product or business idea but you feel that franchising may not be the most suitable way forward.
If you are a potentially new franchisor our commercial law team will review your business to see whether it is franchiseable or whether there are better alternatives and then assist and support you to implement the most appropriate arrangement to achieve your business goals. If you are an existing franchisor our franchise experience will give you the confidence that your legal team is there to support you allowing you to concentrate on successfully building your franchise.
We don't just sell time; we sell experience, expertise, know-how and results, and are able to offer a wide range of pricing options which may include Fixed Fees and Service Level Guarantees.
Give us a call or complete our online enquiry form, to see how we can help. We have offices in Telford, Shrewsbury, Oswestry, Ludlow, Bromyard and Hereford so are able to act for clients all over Shropshire, Herefordshire, Mid and North Wales and across the Midlands.
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