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Great service and very reasonably priced, Kem was really helpful and professional. Would use again
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21 November, 23
Great Interaction
Great interaction. I had a simple question which would have cost a fortune going to see a local solicitor. It was all very professional but still friendly. The solicitor I spoke to was the chief executive of her law firm (I looked her up on LinkedIn). You are dealing with very good lawyers who earn additional money through Lawhive. I would definitely use this service again. Highly recommend.
Mark,
29 December, 23
The solicitor who was appointed to me was outstanding
Very simple to engage with instant confirmation in writing straight after. Daniel, the solicitor who was appointed to me, was outstanding in his approach, his understanding of the technicalities of the law and, crucially, a genuine care for the client. Would definitely advise using Lawhive, you won't regret it.
Tahir Idris,
04 October, 23
We were so pleased to find the Lawhive website
After struggling to find a solicitor willing to give us advice, and for a reasonable cost, we were so pleased to find the Lawhive website. At first we wondered how well it would work, but needn't have worried at all - the whole process was simple, straightforward and professional and great value for money. We felt extremely lucky to be matched with our solicitor, Sonay Erten, as she was exactly what we were looking for - knowledgeable, patient and kind - a refreshing change from solicitors we have used in the past. She showed a great deal of empathy for our situation and explained things in language that was easy to understand (rather than the usual "solicitor" talk, which can be intimidating). She's a shining example of what a solicitor should aspire to be and I wouldn't hesitate to recommend her to others or use her again in the future. We came out of our session reassured and confident of what we needed to do going forward, so a big "thank you!"
Julie Taylor,
01 June, 23
Fast and professional
I got the outcome I wanted regarding cease and desist to a competitor spreading defamatory statements about my business. Fast and professional, and at a much lower price than high street firms. Highly recommended thanks.
Jason Hunter,
23 July, 23
Very efficient! Can highly recommend.
I found the website very easy to use. Quick responses and I was even able to talk to someone who was friendly and competent. She rang me rather than emailed me. A solicitor was quickly found who could help me and once the relevant identification was approved he started work. Within two days the solicitor had checked documents and commented on them. Very efficient! Can highly recommend.
Pauline Piper,
15 February, 23
The service was fast and ultra professional
Sonay was really informative and understood my questions instantly, what I thought was complex Sonay simplified massively. She regularly checked in and the service was fast and ultra professional. Would highly recommend.
Jamie Crichton,
09 November, 23
Great service and very reasonably priced,
Great service and very reasonably priced, Kem was really helpful and professional. Would use again
Sarah Shanks,
21 November, 23
Rated 4.8 / 5. Showing our 4 & 5 star reviews.

About

A Franchise Agreement is a contract between a franchisor and a franchisee. The franchisor grants the franchisee the right to use the franchisor's trademark and business model in exchange for a fee. Solicitors can ensure these contracts meet the aims of the franchisor and franchisee.Next steps

How much does a Franchise Agreement cost?

The cost for a licensed solicitor to help with a Franchise Agreement is dependent on many factors including the complexity and specific requirements of the case. On average it is expected to range from £188-£250 but in some cases it could cost as much as £258.

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Franchise Agreement Solicitors

Franchise agreements are the backbone of any franchise business.

For franchisors, these agreements ensure brand consistency and help maintain the integrity of their business model. On the other hand, franchisees benefit from a ready-made business concept and the support of an established brand.

At Lawhive, our network of experienced solicitors specialise in franchise law. They can: 

  • Review a franchise agreement and create a written report outlining principal terms and highlighting any unusual or onerous provisions

  • Provide advice around franchise agreements

  • Draft a franchise agreement 

Contact our Legal Assessment team for a free quote and discover how our network of specialist solicitors can assist you with your franchise agreement needs.

What is a franchise agreement?

A franchise agreement is a contract between a franchisor (the company that owns the brand) and a franchisee (the individual or company buying into the brand).

Franchise agreements spell out who does what, how money flows, and how long the partnership lasts.

For both parties, understanding these agreements is key. They keep things running smoothly, ensuring everyone's on the same page and reducing the chances of disagreements or legal headaches down the line. 

How do franchise agreements work?

Franchisors keep ownership and control of their brand while receiving payments from franchisees. This setup lets them expand without shouldering all the costs and risks, like finding locations and stocking inventory.

In the UK, there's no specific law for franchise agreements. That means negotiating and understanding the agreement is important for protecting both parties and avoiding disputes.

Every franchise agreement is unique and must be personalised to the specific needs of the franchisor and franchisee. But, there are some common elements that most solid franchise agreements include – we'll dive into those later.

Different types of franchise agreements

There are four types of franchise agreements to consider when businesses plan to enter into a franchise agreement:

Single-unit franchise agreement 

A single-unit franchise agreement is a contract that gives a franchisee the right to operate one unit or location of a franchisor’s business. Like other franchise agreements, it lays out the terms, conditions, and responsibilities of both parties. It also covers fees and guidelines for running the franchise unit.

Multi-unit franchise agreement

A multi-unit franchise agreement allows a franchisee to operate multiple franchise locations or units. This agreement specifies the terms and conditions for managing these multiple units, including the schedule for completing building works and details of financial commitments.

Area development franchise agreement

In an area development franchise agreement, a franchisee can establish multiple franchises within a designated geographic area. This agreement outlines development schedules, performance key performance indicators (KPIs), and territorial exclusivity clauses, empowering the franchisee to expand and enhance their business within the specified region.

Master franchise agreement

This franchise agreement allows a franchisee to operate as a franchisor within a defined area. The master franchisor assists the franchisee in recruiting and expanding, often covering some setup costs while also receiving a portion of the royalties earned by the franchise.

What should a franchise agreement include?

The contents of a franchise agreement vary based on the type of agreement. Usually, franchisors use standard agreements to keep their business model consistent, but there may be room for negotiation. 

Typically, franchise agreements cover financial aspects like:

  • Franchise fees

  • Royalties

  • Marketing

  • Product costs. 

Additionally, agreements for multi-unit franchises, area development, and master franchises include details about territorial rights, and permitting franchisees to operate within specific geographic areas.

How long do franchise agreements last?

Usually, franchise agreements have an initial fixed term ranging from 5 to 20 years, influenced by factors like the type of franchise, industry, and business model.

When the agreement ends, the franchisee may have the option to renew, subject to specific conditions. Renewal terms vary, and some agreements allow for multiple renewals, often involving a renewal fee.

Franchise agreements typically require valid reasons for termination, although some may include a 'force majeure' clause, allowing termination due to unforeseen circumstances.

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Why are franchise agreements important?

Franchise agreements define the rights and responsibilities of both franchisors and franchisees, establishing a solid foundation for a successful partnership.

They outline the duration of the franchisor-franchisee relationship, a key consideration for both parties. Additionally, they detail fee structures, including whether fees are tied to turnover. This is particularly important as unprofitable franchises can pose challenges for franchisees. They also should clarify how fees are collected, for example, directly from the franchisee or through deductions from sales.

How much does a franchise agreement cost?

How much a franchise agreement costs depends on the service you need. At Lawhive, we offer a range of services to support both franchisees and franchisors including:

  • Franchise agreement drafting, with or without negotiations with the other party

  • Franchise agreement reviews

  • Advice on purchasing a franchise agreement.

Our franchise agreement services typically cost between £149 - £949, depending on whether you need advice, a review, or full drafting and support with negotiations.

Contact our Legal Assessment team to get a free fixed-fee quote.

What are restrictive covenants in a franchise agreement?

Franchise agreements usually allow both parties to end the relationship together. 

After a while, there may be restrictive covenants to prevent the franchisee from using what they learned to compete with the franchisor. These rules can last 1-5 years and stop the franchisee from starting a similar business. 

Restrictive covenants in a franchise agreement must be clear. If not, a judge might say they can't be enforced.

Do I need a solicitor for a franchise agreement?

Legally, you don't have to hire a solicitor to make a franchise agreement. But, it's smart to get help from a corporate solicitor to ensure it's legally binding.

Franchise agreements are often complicated, so having a solicitor in your corner can be a big help.  

How can Lawhive help?

At Lawhive, our corporate solicitors have the knowledge and experience to guide you through the process of drafting a franchise agreement, or better understanding the risks and opportunities of entering into a franchise agreement.

Get in touch with us for a free case assessment to discuss your needs.

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