Brexit - Implications for UK franchising
This will largely depend on the nature of the UK's future trading relationship with the EU. It is yet to be seen which route is chosen, but the following are likely to be most impacted:
Staff - The ability (or lack of it) to restrict EU workers played a pivotal role in the referendum. If the UK was to close its borders to EU workers, then it is likely that the EU will also take steps which impact upon the ability of UK workers to work freely in the EU. Therefore, franchisors should consider their employment strategies.
In addition, large swathes of UK employment, food hygiene, health and safety legislation, is based on EU directives or regulations. It is not clear as to how much will be repealed which will result in uncertainty for business.
Intellectual Property Portfolio - this likely to be affected most. At the moment, all member states benefit from a range of EU-wide intellectual property regimes. Trade Marks and trade secrets are particularly relevant in franchising. It is possible to obtain protection for a trade mark and design under one EU trade mark, known as the EUTM. In future, it is likely that UK trade marks will have to be maintained separately from the EUTM, which will require a franchisor to register in both the UK and EU to ensure that its TM is protected, at additional costs and management time.
Read Gurmeet Jakhu's full article here: