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Commercial contract advice for franchisees

If you are considering the purchase of a franchise, we can advise you on the terms and conditions of your franchise agreement – making sure you are fully aware of any consequences prior to signing.

To purchase a franchise, you will be required to enter into a franchise agreement with the franchisor. This agreement will detail how the relationship between you and the franchisor will be operated. A franchise agreement will affect the franchisee, not just in legal terms, but also on a practical day to day basis.

They are typically drafted in the franchisor’s favour, so it is important to seek legal advice to advise on any terms that are particularly harsh and to indicate where further information should be requested. It is important to be fully aware of the contents of a franchise agreement and to understand the consequences of entering into it. By seeking legal advice before signing a franchise agreement you will ensure that you are giving yourself the best opportunity in this new business venture.

The franchise agreement will cover issues including:

  • Payment of fees to the franchisor
  • Maintenance of accounting/VAT records
  • Training
  • Sale of your franchised business
  • Non-competition restrictions on the franchisee where the franchisee becomes ill or dies
  • Advertising
  • Insurance
  • The franchisee’s liability to the franchisor where the franchisor suffers a loss of any kind
  • Circumstances where the franchisor can terminate

Prices will vary depending on the style of franchise agreement, and we will discuss your transaction at the outset. Contact us for a no obligation discussion.

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