Experienced franchise law solicitors

Helping you set up as a franchisee

Ormrods Solicitors & Advocates can support you with all the legal requirements of entering into a franchise agreement.

Franchising is often seen as a secure and supported way to start a business.  As with any venture however, there are risks to be managed carefully.

If you are looking at investing in a franchised business, it is essential that you thoroughly research the market and seek professional legal advice about how it will be set up.

Franchising is better suited to some than others, so before you make your final decision, you should weigh up the pros and cons and ask yourself the following questions:

  • Is the business right for you and do you have the necessary skills?
  • Can you work well with the franchisor and operate within their franchise system?
  • Can you afford it and is the price right?
  • Have you taken the appropriate professional advice?
  • Have you studied all the alternative options?

A great business idea that you want to franchise

If you want to grow your business, for example, by spreading your geographical reach across different areas of the country, you might want to consider franchising it out to a third party.

By doing this, you may be able to achieve a faster growth rate for your business network whilst developing new outlets using your franchisees’ resources.

Other benefits include less involvement in daily operations of franchised outlets, fewer staff than for a company-owned network and evidence that franchisees often perform better than employed managers.

Ormrods Solicitors & Advocates can assist you in tackling the many different challenges franchising can present, many of which are dependent on the nature of the business being franchised.

There are a number of legal issues to consider when dealing with franchisees who have invested in their own business and are, in effect, independent traders.

As a franchisor, you must take steps to protect yourself from liability for defaults by the franchisee. You will also need to consider management processes, communication, pricing consistency and control.

For example, competition laws will affect issues such as territorial exclusivity, tying product supplies, sales restrictions, internet selling and non-compete obligations.  Although you as franchisor may recommend prices and can fix maximum resale prices, you cannot fix minimum prices.

Franchising also involves carefully protecting your intellectual property rights, including trade-marks, trade secrets and copyright.  The sale of the ‘business opportunity’ requires precautions against misrepresentation claims.  And if you are a franchisor involved in the property chain, sub-letting to franchisees requires special attention and procedures. 

So if you have a business that you want to franchise or if you are thinking of becoming a franchisee yourself, call Geoff Ormrod on 01253 861032.