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Franchises can be exciting and profitable opportunities, whether you are a franchisee or a franchisor. That said, entering into a franchise is not without its risks. To safeguard your business interests, it’s important to seek help from a specialist solicitor who is experienced in dealing with franchise agreements.
At Clarkson Wright & Jakes, we can help clients with expert legal advice regarding franchise law and franchising agreements. We have experience in this area, having supported clients with a wide range of different needs across many industries.
Our team can offer clear, practical advice and support to help you to get a fair franchise agreement in place that matches your commercial objectives. We can also step in if there is a question over the terms of an agreement or a dispute has arisen.
Looking for more information about franchising? Please take a look at our franchise agreements FAQs.
To discuss how our franchise agreement lawyers can help you, please contact us on 01689 887887 or fill in our enquiry form.
Our solicitors can assist with:
- Reviewing franchise agreements
- Review of other franchise legal documents
- Resolving franchise agreement disputes
- Specialist franchise law advice
Our franchise agreements expertise
Our Corporate & Commercial Department advise franchisors and franchisees of various types on different aspects of their businesses. We are based in Orpington and work with clients in London, Kent and across the South East.
Our commercial law expertise has been recognised by leading client guide the Legal 500 and we are ranked for corporate law by Chambers & Partners. Partner and Head of Corporate & Commercial Ben Madden and Senior Partner Andrew Wright are also both individually ranked by Chambers & Partners.
Our fees
At Clarkson Wright and Jakes, the prices that we offer match the top-quality service that we provide for our clients. Our team will give a clear estimate of costs from the beginning, without hidden charges or fees.
How our solicitors can help
Reviewing franchise agreements
Franchise agreements cover a range of important legal areas, all of which should be understood before signing, including:
- Information regarding franchise fees and commissions
- Intellectual property usage, for instance any specific restrictions on how the franchise may use the franchisor’s IP
- The franchise location, alluding to the area and territory rights of this franchise
- Terms regarding the duration of the franchise and if the contract can be renewed
- The duties of the franchisor and of the franchisee
- The termination conditions of the franchise
Our specialists at Clarkson Wrights and Jakes can assist clients to review existing franchise agreements, or those they are preparing to enter into, providing bespoke advice tailored to your situation.
Franchise legal documents
As well as reviewing and drafting franchise agreements, we can draft and review the following franchise related legal documents:
- Personal guarantee documents: A franchisor may request a personal guarantee, to ensure and provide security that the franchisee will adhere to the appropriate liabilities and obligations
- Non-disclosure agreement: Franchisors often require franchisees to sign non-disclosure agreements, to protect any sensitive information, particularly in the early phases of negotiation
Resolving franchise agreement disputes
Franchise agreement disputes can arise in a variety of different circumstances and it can be a challenge for the involved parties to resolve matters between themselves.
Our solicitors in Orpington have much experience helping clients to resolve franchise disputes, assessing their needs and helping them to negotiate toward a best case scenario outcome.
Our team can assist clients with alternative dispute resolution processes, like mediation, giving both parties the chance to negotiate toward a conclusion, without attending Court. If we are unable to resolve your dispute using mediation, we can provide support throughout litigation processes.
Specialist franchise law advice
As well as providing assistance on franchise agreements, our team can offer specialist franchise law advice covering all of a franchisor or franchisees needs, including:
- Legal recommendations and guidance on franchise sales and purchases
- Employment law for franchisors and franchisees
- Franchise data protection issues
- Specialist guidance surrounding intellectual property and trademarking law
- Choosing a franchise legal structure
Franchise agreements FAQs
What is a franchise agreement?
A franchise agreement is a type of legally binding document existing between a franchisee and a franchisor.
The agreement details how the legal relationship will work between both, covering the rights and responsibilities of both the franchisor and the franchisee.
How does a franchise agreement work?
A franchise agreement is a legal contract that exists between a franchisee and a franchisor. It works by outlining the terms that dictate the relationship between the two parties. It covers all key areas of the franchise including the rights and obligations of each party, the length of the contract and so on.
Both parties must sign the agreement and adhere to the terms. If disputes arise throughout the course of the working relationship, it is often necessary to seek legal support.
Our franchise solicitors can offer comprehensive legal assistance, whether that’s to draft franchise agreements or to settle disputes.
What are the franchise legal requirements in the UK?
In the UK there is no legislation which relates to franchises specifically, however, when entering into a franchise, the legal terms are defined in a franchise agreement between both parties, to govern the relationship on contractual terms.
Franchisees are permitted to retain earnings they make and are considered the owner of the business. They are obliged to pay fees to the franchisor including any initial franchise fee and ongoing royalty or commission fees. The franchisor remains the brand owner and also the owner of the intellectual property.
What is a franchise legal structure?
A legal structure is used to determine how a business’s debt liabilities and profit distribution will work. Some franchisees will not be given a choice about how to legally structure their business and others will be permitted this choice, it largely depends on the type of franchise and the attitude of the franchisor.
Possible structures for a franchise include:
- Sole trader
- Limited company
- Partnership
- Limited liability partnership
How to terminate a franchise agreement?
It can be difficult to break a franchise agreement, without breaching the terms of the contract. In many cases, franchisors do not write early termination clauses into their contracts. This affords the franchisor security, yet can make it challenging for the franchisee to exit early should they wish to.
If you would like to break a franchise agreement and there is no clause in the contract which will allow you to do so, you will need to involve a solicitor. Your solicitor will be able to help you work towards resolving your dispute and negotiating the termination.
What are the three conditions of a franchise agreement?
Franchise agreements cover a series of basic conditions, three of the key areas covered are territory rights, the services requirements of the franchisor and standards of minimum performance.
These agreements also cover areas such as franchisee payments, standards of advertising, usage of trademarks, and exclusivity clause and insurance conditions.
Get in touch with our solicitors in Orpington, Kent
To discuss how our lawyers can help you, please contact us on 01689 887887 or fill in our enquiry form.