Franchising Agreements

If you have developed a highly successful business model and recognisable brand it may be appropriate to consider expanding through licensing or franchising.

Franchising involves achieving a successful business model that is profitable, so that another business owner, who is granted a licence to use your intellectual property, business format and experience, can follow your success.

In return for being permitted to use the IP of the franchisor, the franchisee usually pays an initial fee and royalties based on a percentage of turnover or profit. Franchising allows the franchisor to grow their business without having to open, staff and manage new premises, branches or outlets themselves. This means the franchisor can extend this part of its business without having to raise capital to do so, while still retaining considerable control over what the franchisee does with the business.

The franchisee is able to manage what is effectively its own business, which has been thoroughly tested by the franchisor already, and is able to make reasonable use of the franchisor’s business expertise and model. For the franchisee, franchising represents a low risk method of going into business using a tried and tested formula.

tidman-icon-blue

How can we help you

The exact content of the agreement will depend on the type of franchise and we will advise you on the best approach to take before entering into a franchise to extend your business. A franchise should consider the following:

  • obligations of the franchisor and franchisee
  • intellectual property
  • payment provisions
  • confidential information
  • education and training programmes
  • duration
  • warranties
  • termination

A franchising agreement should be drafted and reviewed on behalf of both parties by experienced lawyers to ensure that both parties’ interests are protected by the agreement, and that neither is exposed to unreasonable commercial risk.

To speak to one of our expert business solicitors, contact us by calling 0131 478 4724, or complete our online enquiry form to request a call back.

Arrange a meeting

If you are looking for expert advice for your business, speak to our expert business solicitors today. Call us on 0131 478 4724, or complete our online enquiry form and a member of the team will get back to you.

Latest NewsFrom the blog

trademark
  • Christmas shopping scams

6 easy tips to avoid Christmas shopping scams this year

December 5th, 2023|Comments Off on 6 easy tips to avoid Christmas shopping scams this year

6 easy tips to avoid Christmas shopping scams this year This might be the season for giving, but don't give scammers an early present by getting caught out by a Christmas [...]

  • UK-US Data Bridge

UK-US ‘data bridge’ to take effect on 12 October

September 29th, 2023|Comments Off on UK-US ‘data bridge’ to take effect on 12 October

UK-US 'data bridge' to take effect on 12 October The UK has now agreed to an extension for the transfer of personal data from the UK to the US, known as [...]

  • inventor

New Year’s Resolutions To Help Make You A Better Inventor

January 18th, 2022|Comments Off on New Year’s Resolutions To Help Make You A Better Inventor

New Year’s Resolutions To Help Make You A Better Inventor Here are 7 inventing resolutions to take into the New Year to help you become a better inventor. For further information [...]

Business
SERVICES

Copyright
SERVICES

Trademarks
SERVICES

Design Rights
SERVICES

Patent
SERVICES

IP Audit
SERVICES