The franchise agreement

Franchise agreements must be fair and comprehensive. They are not sales brochures and there is not one standard document that fits any business.

These days, a good agreement will stretch to forty or more pages and is just as much concerned with setting out the obligations of you, the franchisor, as well as your rights. It is equally concerned with setting out the rights of the franchisee and their obligations.

That does not mean that franchise agreements are an equal balance of rights and obligation between equal business partners. Franchisors are responsible for the network as a whole and that sometimes means acting against the interests of an individual franchisee for the greater good of the network. Franchise agreements have gone through more than twenty years of development to ensure that franchisors have the appropriate rights to do their job within a framework of fair and reasonable treatment for franchisees.

There are only a limited number of UK lawyers familiar with the complexity of franchise agreements, and only some of those have the necessary skills to advise a business on the best way to structure a franchise agreement.

In this area you must get fully experienced professional advice.

Go to step six: Financing the franchise

    Mac Tools - Franchisee case study

    Philip left school at 16 to undertake a two-year National Diploma in Advanced Engineering. At the same time he worked a couple of days a week for a local garage where he'd been helping out on a Saturday since his school days. He continued his studies with an NVQ in Motor Vehicle Maintenance before joining the garage full-time.

    Read the full case study
The bfa website is sponsored by

HSBCNatWestLloyds BankThe Royal Bank of Scotland


You have 0 franchise information requests ready to send.

Personalise and submit requests