To Franchise or not to Franchise: That is the question.

If you desire to grow your brand never stop exploring your options................

Franchising is a form of licensing agreement. The Franchiser (or Franchisor) transfers to the franchisee a business concept which the franchisee can utilise within a given territory and in return the Franchiser will receive royalties for the use of the license. 

A franchising agreement is used by the Franchiser and normally stipulates the franchisee will be supplied with expertise, branding, corporate image and management support. 

A Franchise Agreement is for use where one party, the franchisor, wishes to licence out its business to another, the franchisee. In return for being permitted to use the trade marks and other intellectual property of the franchisor, the franchisee will pay a fee.

It can be very difficult for a business owner to decide if the best way to grow their business is to expand or to franchise……

Key Benefit to the Franchisor: The ability to grow your business (and brand) without having to open new sites, employ staff, manage new premises. There is decreased growth risk and increased growth capital. 

Negative to the Franchisor: you will have less control over management and the day to day running and often the different territories will not assist and support each other they way the way you would hope!

Equally for an individual looking to start up a business, do you start of from scratch, or purchase a franchise?

Key Benefit to the Franchisee: have a ready made business which has been tested by the franchisor already. All regulatory and legal considerations have already been taken care of!

Negative to the Franchisee: you cannot simply decide to expand your business. You are only licencing it for a term, therefore if you wanted to expand you would have to purchase a further territory. 

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We have spoken with our Franchisor clients that have taken the leap to franchise their business and they all give similar advice to those looking to follow in their steps;

  1. Be selective – vet applicants for a franchisee position in order to prevent failures with new branches, failure to do so can lead to damage to your brand image.  Franchisors are often very clear about the type of people they want to recruit. They select based on professionalism, the right image, communication skills and core business competencies to ensure they are successful.
  2. Protect your brand – remember this is the most valuable asset you have! You must establish clear guidelines for the use of all of the brand assets.
  3. Location, location, location – keep them close to your home territory at first. You’ll want to easily visit in the so you can monitor and learn. 
  4. Get a lawyer –Choosing the right franchise lawyer is key to becoming a successful franchisor. Entering the world of franchising is a complex venture, and a good solicitor can protect your interests. 

Walker Rose Solicitors can offer the following Franchising services:

Advising and drafting of:

  • Franchise Agreements
  • Company handbook
  • Staff handbooks
  • Employment contract
  • Website Terms of use (incl cookie policies, & Privacy policies)
  • Service contracts
  • Funding agreements
  • Terms & conditions of business
  • Templates
  • Regulatory advice (including data protection)

Walker Rose Solicitors provide sensible commercial legal advice and draft the agreements you need in place to reduce areas of dispute or at least provide a mechanism for the parties to resolve a dispute. We can help you grow and evolve safe in the knowledge that you, your business and your brand are protected and stand on a strong legal ground to move forward.

Our advice is always precise, resilient and affordable.

Get in Touch

To speak to us today -  call us on 0203 9739343 or send a message through our contact us page   or email us at info@walkerrose.co.uk

Our mission is to provide businesses, and their owners, with quality legal assistance in the most cost effective way