Franchising is an increasingly popular way of growing businesses and with the right controls in place, it opens up huge opportunities for everyone involved.
The concept of franchising is founded on the idea that a good business model can be replicated again and again. A business which has an established brand and is looking to expand its markets, or simply exploit its valuable intellectual property, can sell licences. These enable others to use the business’ brand, trade marks, patents and to trade the same products and services in much the same way. That creates a franchise, over which the original company – the head office – retains a significant level of control.
It is inevitable that the franchisor, in relinquishing autonomy, risks damaging its brand. Franchises which fail to meet standards can quickly cost a franchisor its reputation. So it’s crucial that careful thought is put into whether or not franchising is the right option for a particular business and if it’s decided that it is, the terms of any arrangement – to include training, supervision and monitoring of the franchisee - must be carefully drawn up.
Our intellectual property lawyers are experienced in valuing brands and advising on the pros and cons of franchising in respect of any type of UK or internationally-based enterprise. They work with potential franchisees, too, to help them understands the obligations, risks and opportunities offered up by a franchise. They negotiate and draw up comprehensive franchise agreements and franchise renewal agreements and advise on franchise management strategies. They also advise on the intellectual property aspects of the sale of franchise businesses or shares in franchises.
As our lawyers work for both sides, they understand the respective needs, viewpoints and bargaining positions of the two parties involved in any franchise deal.