What are Franchising agreements?
A franchise agreement is a legal and binding contract between a franchisor and franchisee.
The franchise agreement highlights the rights and responsibilities of the franchisor and franchisee. Key points addressed in a franchising agreement are;
- Identity of the franchisor and franchisee
- Intellectual property – identifies the rights that the franchisee has to use intellectual property such as trademarks
- Geographical location – identifies where the franchisee can operate in and whether they have exclusive rights in that location
- Restrictions – identifies and set boundaries to what the franchisee can and cannot do
- Fees – how much the franchisee will pay to the franchisor
- Duration – identifying how long the franchise will last and what happens at the end
- End of franchise agreement – identifies what happens if either partner wants to end the agreement
Why should I consider a Franchise Agreement?
Franchising is a great method if you are a business entrepreneur; there are two primary forms of franchising agreements.
- Single-store franchise agreements – this is suitable for those who have not managed their own business before as this agreement provides various types of support systems to get started. It is also suitable for those who have experience of managing a previous business, as it allows those people relief from responsibility of managing a business without additional support.
- Multi-store franchise agreements – this is suitable if you have previous business management experience and you simply would like to challenge and grow your business.
Seeking advice for a Franchising Agreement- Do I need a solicitor?
It is highly recommended to seek legal advice before signing any franchising agreements, as it makes the process more efficient, and cost-effective because receiving the right legal advice ensures that you enter into a stable agreement with no complications or loose ends, this will also give you a peace of mind.
How we can help
P.A. Duffy & Company Solicitors have years of experience working closely with clients who are drafting, renewing, and challenging franchising agreements in Northern Ireland. We pride ourselves in our commitment to seek the best legal outcome for our clients and their business. Our solicitors understand that business law can be overwhelming for many business owners, so we ensure that the majority of the legal burden is taken off you as we deal with legal matters in your business.