Legal advice on UK Franchising

Before making any commitment, or paying any money, it is essential that prospective franchisees take appropriate professional advice from an experienced franchise solicitor.   Remember a franchise contract is long-term, the money you spend on expert solicitors' advice could be one of the best investments you make.  For further information or to contact an affiliated bfa solicitor.

The legal stages

There are various legal stages that you will have to go through before you buy a franchise.

The franchise agreement

In order to become a franchisee you will have to enter into a legal agreement with the franchisor, known as the franchise agreement.

Refusing a Franchisee Consent to Sell

Most franchise agreements contain a provision to the effect that if the franchisee wants to sell its business, the consent of the franchisor is required, but that the franchisor will not unreasonably withhold that consent.

If it all goes wrong

A franchise relationship, as with a marriage, can come to an end. You need to therefore look at:

How can the two parties withdraw from a relationship in which they have freely shared each other's business plans and secrets with a degree of fairness?

How can the franchisor ensure that the departing franchisee does not become a competitor to himself and the franchisees remaining in the system?