Franchising

For Franchisors

If you’ve built a successful business and want to franchise it, there’s a lot to consider. You need to ensure your brand, systems and know-how are properly protected, that your franchise agreement gives you the control you need, and that your offering complies with industry standards and best practice.

What We Can Help With:

• Franchise Agreements — Drafting comprehensive agreements that clearly set out the rights and obligations of both franchisor and franchisee
• Operations Manuals — Advising on the legal aspects of your franchise manual
• Intellectual Property Protection — Ensuring your trade marks, branding, trade secrets and confidential information are properly protected
• Franchise Disclosure — Helping you prepare the information you should provide to prospective franchisees
• Territory and Exclusivity — Defining geographic rights and market allocation
• Training and Support Obligations — Clearly setting out what support you’ll provide
• Quality Control — Building in standards and compliance mechanisms
• Termination and Exit — Establishing clear grounds for termination and what happens to the business on exit
• Renewals — Setting out the terms on which the franchise can be renewed
• Compliance with the British Franchise Association (BFA) Code of Ethics — Where applicable

For Franchisees

Investing in a franchise is a major financial commitment. Before you sign a franchise agreement, it’s vital to understand exactly what you’re committing to, what rights you’re getting, and what restrictions you’ll be operating under.

What We Can Help With:

• Reviewing the Franchise Agreement — Explaining the terms in plain English and identifying any concerns
• Negotiating Amendments — Where possible, negotiating more favourable terms on your behalf
• Understanding Your Obligations — Ensuring you know what’s expected of you in terms of fees, royalties, marketing contributions, operating standards and reporting
• Restrictive Covenants — Explaining any non-compete restrictions that apply during and after the franchise
• Exit Strategy — Understanding what happens if you want to sell, transfer or terminate the franchise
• Due Diligence — Helping you ask the right questions before committing

Key Considerations in Any Franchise Relationship

• Franchise fees and ongoing royalties — Initial fees, ongoing management service fees, marketing fund contributions
• Territory — Is it exclusive? What are the boundaries?
• Duration — How long is the initial term and is there a right to renew?
• Intellectual property — What can you use and what happens to it when the agreement ends?
• Termination — On what grounds can either party terminate? What are the consequences?
• Post-termination restrictions — Are there non-compete or non-solicitation clauses?
• Dispute resolution — How will disagreements be resolved?

How We Can Help

At Nelsons, our Commercial Team has experience advising both franchisors and franchisees. We understand the commercial dynamics of franchise relationships and provide practical, straightforward advice that helps you make informed decisions and protect your interests.

We’re based in Derby, Leicester and Nottingham, but we advise businesses throughout the UK and beyond.

Call us: 0800 024 1976 Submit an enquiry: Complete our online enquiry form