Franchising and Licensing
Our Franchise Agreement is for use where one party, the franchisor, wishes to effectively licence out his business to another, the franchisee. In return for being permitted to use the trademarks and other intellectual property of the franchisor, the franchisee will pay a fee.
Franchising offers advantages to both the franchisor and the franchisee. The franchisor can grow their business without having to open, staff and manage new premises, branches or outlets themselves. The franchisee on the other hand, can manage what is effectively their own business, which has been tested by the franchisor already, and is able to make reasonable use of the franchisor’s expertise and experience.
Our Franchise Agreement will ensure that any confidential information, which will include commercially sensitive information and trade secret, is protected from unauthorised disclosure, protecting the interests of the franchisor.
In addition to the provisions of the Franchise Agreement, the franchisor will also need to provide a “manual”. This is basically a rule book, which will provide all the necessary detail required for the successful day-to-day running of the franchised business, such as minimum standards and insurance requirements. By providing that certain details are specified in such a manual, this Franchise Agreement ensures that there is added flexibility in the ongoing relationship.