According to the NatWest/BFA Franchise Survey 2011, the estimated annual turnover of the business format franchise sector is £12.4 billion, with the number of franchisor brands operating in the UK standing at 897, granting franchises in respect of 36,900 franchisee outlets of which 90% are profitable.  The survey also estimates that 521,000 people are employed in franchising in the UK.

This has grown from an industry that 20 years ago had a turnover of just over £5 billion, had 379 different brands and represented 18,300 franchisee outlets, reflecting the growing importance of the business format franchise sector.

We can provide a number of services in connection with business format franchising, as well as more bespoke franchising or controlled licensing arrangements.

For franchisors:

We can work with prospective franchisors in setting up new franchise networks, drafting the necessary framework of legal documentation.  If you are an already established franchisor, we can assist by providing a ‘health check’ review of your existing documentation, to ensure it conforms to current standards and recent changes in legislation.   Services we can offer to franchisors or prospective franchisors include:

  • Drafting or reviewing and revising franchise agreements (whether single unit or multiple unit franchise agreements, master franchise agreements or development agreements for the development of a particular region)
  • Drafting bespoke licensing arrangements regarding the use of trademarks and know-how
  • Drafting confidentiality agreements, deposit agreement and other documentation ancillary to the franchise agreement
  • Drafting and advising on joint ventures with franchisees
  • Advice on brand protection and other intellectual property rights
  • Advice on competition law issues and restrictive covenants

For franchisees:

We understand that the starting point for many franchise agreements are that they are non-negotiable, however we will ensure you fully understand the financial and personal obligations you are signing up to before you commit. We will then continue to advise you, in person or remotely, until you are comfortable with the contents of your franchise agreement and its terms. If any negotiations with the franchisor are required we can assist with these on your behalf. We have experience advising prospective franchisees in a wide variety of business sectors and are on the panel of recommended lawyers for Toni & Guy franchisees.  Services we can offer to franchisees include:

  • Advising on the terms of franchise agreements including preparation of reports on a fixed-fee basis
  • Assisting with franchise renewals and re-sales
  • Property and employment law work associated with your franchise

For franchisors and franchisees:

We are a full service law firm and can offer legal services that may be relevant to franchising in a variety of practice areas, including:

  • Drafting leases, assignments and commercial property law advice
  • Employment law advice
  • Dispute resolution and mediation
  • Insolvency advice if a franchise fails or is failing