The franchise agreement
The Franchise Agreement must be fair and comprehensive. This is not a sales brochure – but a legal contract. There is no such thing as a ‘standard document’ that will fit some or all businesses. Each is unique and tailored to the requirements of the franchise business.
A good Franchise Agreement will ensure that the obligations and rights of both parties – i.e. franchisor and franchisee – are set out as required and the final contract is likely to run to 40 or more pages
This 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, sometimes, this can means acting against the interests of an individual franchisee for the greater good of the network.
Franchise agreements have been developed over the course of more than 20 years to ensure that franchisors have the appropriate rights to do their job within a framework of fair and reasonable treatment for franchisees.
Few solicitors are sufficiently familiar with the complexities of the different types of franchise agreements. Even fewer, have the necessary skills to advise a business on the best way to structure a Franchise Agreement.
We strongly recommend that you seek professional advice from a bfa accredited UK Franchise Lawyer. These are solicitors with specialised experience in franchising - from franchise agreements to litigation.