Business Contracts

Franchises

Franchises in the UK are becoming an increasingly popular way to run a business. There are few people unfamiliar with brands such as MacDonalds, Costa Coffee or The Body Shop; all are well known franchises.

But it is not just the big household names that are turning to this model as a way of growing their business. Franchisors allow the franchisee to use a name which is associated with the franchisor, continue to exercise some control over the franchisee, provide assistance to the franchisee (marketing, financial or administrative) and take periodic payments from the franchisee.

For both franchisor and franchisee there is much to consider. As well as all the usual employment and tax implications of running a business, there must be an operations manual (setting out exactly how the franchisee will operate) in place - we can assist with the drafting of this manual. Property issues need to be addressed at an early stage. Often the premises will be held on a lease to the franchisor then sub-let to the franchisee.

Advertising agreements, intellectual property rights, the CRC Energy Efficiency Scheme and restrictive covenants all need to be considered before entering into any agreement. Contact our Commercial Team to discuss your franchise options and ensure that you have all bases covered.