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Franchise Agreements (Franchisee)

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What else you might like to know about Franchise Agreements (Franchisee)

If you are purchasing a franchise from another business, it is important to seek the help of a legal service provider to ensure that favourable terms are agreed. Here is some basic guidance to inform your choice of legal expert.

What are the benefits of a franchise agreement?

A franchise agreement is the contract between the franchisor (the owner of the business and it's associated marks and intellectual property) and the franchisee (the individual or group looking to set up business using an established brand name and/or infrastructure). The agreement sets out each party's duties and responsibilities.

What terms should be set out in a franchise agreement?

A franchise agreement should detail the rights and obligations of both the franchisor and franchisee. The franchise's terms of payment, the agreed length of time that the franchise license will last for, and a franchise termination process should all be included in the agreement alongside terms of use for any intellectual property.

How should I choose a legal expert?

Buying a franchise typically involves a substantial outlay from the outset, so it is important to ensure that the terms of any agreement are fair to you as the franchisee. You should choose a legal service provider with considerable experience in handling franchise agreements in order to receive the best possible advice and guidance. It is also worth considering the location, reputation and cost of a firm before making your decision.


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How will a legal service provider charge me?

Legal service providers are likely to offer you a fixed fee service for handling franchise agreements.

What happens if the terms of a franchise agreement are broken?

Usually, the terms of the franchise will be automatically terminated first and foremost. After the agreement has ended, cases will usually proceed on an individual basis. Sometimes it may be necessary to take further legal action or mediation if losses have been made or money is owed.

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