The Franchise Agreement

The franchise agreement is one of the cornerstone documents of the franchisee -franchisor relationship. It is this document that is legally binding on both parties, setting out the responsibilities and obligations of each party. If both parties know what is expected of them, then working together is so much easier!

Most agreements will contain reasonable and ethical provisions as set out by The British Franchise Association from time to time, including;
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  • Training and operational support the franchisor will provide
  • The franchise territory and appropriate exclusivity
  • Duration of the franchise agreement and your renewal rights
  • Investment levels
  • Trademark use
  • Explains the service and management fees that are payable
  • The terms under which franchisees can sell their franchise
  • Terminating the franchise and the consequences
  • Marketing policies
  • Settlement of disputes

There is no standard form of franchise agreement because the terms, conditions, and the methods of operating the various franchise businesses vary widely depending on the day to day responsibilities involved. For example, franchises for printing, employment agencies, and automotive products will differ from the franchises for fast food service, convenience stores, or clothing.

Due to its importance we recommend that a franchise agreement is written by an experienced franchise solicitor affiliated to the BFA.

The Franchise Company have been involved in franchise development for nearly 20 years and the consultants have many years franchise experience. We’ve dealt with a large number of franchise agreements, from simple business relationships, (sole trader) to large complex international franchise agreements for public companies, and we have a large number of contacts that we can use to assist clients with their agreements. For more information, simply contact Ken Rostron on 01325 251455. Or email on kr@franchisecompany.co.uk.

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The Franchise Company operates with a team of experienced franchise consultants able to provide clients with a comprehensive range of services throughout the UK and overseas. We offer help and franchise advice on every aspect of franchising and licensing, and have worked with a wide range of UK organisations from owner operators to public companies. Whatever you franchising needs are we can help you

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