Franchise Law - Jonathan Lea Network

We provide expert legal advice and support for businesses involved in franchising. Whether you are an established franchisor, a growing franchise network, or an entrepreneur considering purchasing a franchise, our dedicated team is here to assist you with every legal aspect of your franchising journey.

Franchising can be a powerful way to expand a business, but it comes with unique legal and commercial challenges. Our team is experienced in providing pragmatic, tailored advice to help you navigate these complexities successfully.

Understanding the Franchise Model

A franchise business model typically allows an entrepreneur (the franchisee) to operate a business using the branding, systems, and support of an established company (the franchisor). In exchange, the franchisee usually pays an upfront fee and ongoing royalties to the franchisor. This model enables franchisors to expand their brand quickly and franchisees to benefit from an established business framework.

UK Franchise Industry Statistics

  • The UK franchising industry contributes over £15 billion annually to the economy.
  • There are more than 48,000 franchised businesses operating in the UK.
  • Approximately 93% of UK franchises are profitable, demonstrating the success and resilience of this business model.

Common Legal Issues in Franchising We Can Help With

We understand that franchising involves a diverse range of legal considerations. The Jonathan Lea Network can support you with:

  • Drafting Franchise Agreements: Ensuring the agreement is comprehensive, legally sound, and tailored to your specific franchise model.
  • Franchise Disclosure Obligations: Advising on what information must be provided to prospective franchisees under UK law.
  • Franchise Disputes: Assisting with resolving disputes between franchisors and franchisees, including breach of agreement or misrepresentation claims.
  • Franchise Network Expansion: Advising franchisors on strategies for domestic and international growth.
  • Trademark and IP Protection: Securing and safeguarding the intellectual property rights that underpin your brand.
  • Regulatory Compliance: Ensuring compliance with UK franchise regulations and best practices.
  • Buying and Selling a Franchise: Supporting buyers or sellers through the due diligence, negotiation, and transaction processes.
  • Terminating Franchise Agreements: Guiding you through termination processes, ensuring compliance with contractual and legal obligations (including restrictive covenants).
  • Commercial Lease Advice: Assisting franchisees with negotiating lease agreements for their franchise premises.
  • Employment Issues: Advising on employment law matters affecting your franchise business.

Fixed Fee Franchise Agreement Reviews

For individuals taking a franchise, understanding the terms of the franchise agreement is crucial to ensuring a successful business relationship. At The Jonathan Lea Network, we offer a cost-effective fixed fee franchise agreement review service to provide clarity and confidence before you commit.

How This Service Works

  1. Initial Consultation: We begin with a discussion to understand your business objectives and any specific concerns about the franchise agreement.
  2. Agreement Review: Our legal experts will thoroughly review the franchise agreement, highlighting key terms, obligations, and potential risks.
  3. Report and Advice: We provide a detailed written report summarising the agreement’s provisions, identifying areas for negotiation, and advising on your rights and obligations.
  4. Follow-Up Discussion: We schedule a follow-up call or meeting to address any further questions and guide you on next steps.

Why Choose Our Fixed Fee Review?

  • Transparency: A clear, upfront fee with no hidden costs (starting from £350 + VAT).
  • Expertise: Advice from experienced franchise law specialists.
  • Clarity: Understand exactly what you are signing up for before making a long-term commitment.
  • Tailored Advice: Personalised recommendations aligned with your goals.

This service is ideal for individuals new to franchising or those looking to protect their interests when entering into a franchise agreement.

Frequently Asked Questions About Franchise Law

What is a franchise agreement, and why is it important?

A franchise agreement is a legally binding contract between a franchisor and a franchisee that sets out the terms of the franchise relationship. It is crucial because it defines the rights, responsibilities, and obligations of both parties and provides a framework for the operation of the franchise.

Do I need a solicitor to buy a franchise?

While it is not a legal requirement, having a solicitor experienced in franchise law is highly advisable. They can review the franchise agreement, conduct due diligence, and ensure that you understand your rights and obligations.

Can I negotiate the terms of a franchise agreement?

Yes, but the extent of negotiation may vary depending on the franchisor. Having a legal expert review the agreement can help identify terms that may be negotiable and protect your interests.

What happens if a franchisee breaches the agreement?

If a franchisee breaches the agreement, the franchisor can take steps outlined in the contract, which may include termination of the franchise or seeking damages. Legal advice is essential to handle these situations properly.

How can I protect my intellectual property in a franchise?

Franchisors should register trademarks and other IP rights and include robust clauses in the franchise agreement to prevent unauthorised use.

Can a franchise agreement be terminated early?

Yes, but termination must comply with the terms of the agreement and applicable laws. Grounds for termination are typically outlined in the agreement, such as breach of contract or insolvency.

What is franchise disclosure, and is it mandatory in the UK?

Unlike some jurisdictions, the UK does not have mandatory franchise disclosure laws. However, providing clear and honest information to prospective franchisees is considered best practice.

How long does a franchise agreement usually last?

Franchise agreements typically last 5 to 10 years, but the duration varies depending on the franchise model and the parties’ agreement.

What is the British Franchise Association (BFA), and should I work with a BFA-accredited franchise?

The BFA is a voluntary association that promotes ethical franchising in the UK. Working with BFA-accredited franchises can provide an additional layer of confidence.

What are the main risks of becoming a franchisee?

The main risks include financial failure of the franchise, disputes with the franchisor, and restrictive contractual terms. Conducting due diligence and seeking legal advice can mitigate these risks.

What is the difference between franchising and licensing?

Franchising and licensing are both methods for expanding a business, but they differ significantly in their structure and obligations.

  • Franchising: Involves a comprehensive agreement where the franchisor provides branding, systems, training, and ongoing support to the franchisee, who operates under the franchisor’s business model.
  • Licensing: Generally allows the licensee to use certain intellectual property, such as a trademark, without the level of control or support seen in franchising.

Franchising typically involves stricter regulations and a more involved relationship, while licensing offers more flexibility but less uniformity.

 

Contact The Jonathan Lea Network today to discuss your franchising needs. Whether you are a franchisor, franchisee, or considering entering the franchising world, our expert team is here to support you every step of the way.

Our Franchise Law Team

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Request a Free No Obligation 20 Minute Call

This introductory call is to discuss your matter so we can provide a well-considered quote.

 

However, please be aware that the free 20 minute call is at our discretion. If you are more looking for advice and guidance on an initial call, we may instead offer a one-hour fixed fee appointment instead.

 

Our fixed fee appointments are between £200 – £300 + VAT depending on the seniority of the solicitor taking the call.

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