If you are thinking of becoming a franchisor or franchisee, or if you are already involved in a particular franchise, you are highly likely to need the services of a franchise solicitor.
This article looks at how a franchise solicitor can help you and why you should definitely make sure you have a team of specialist solicitors on your side – and ones who can provide a wide range of legal support including intellectual property advice.
Initial advice
One of the main reasons for using a franchise solicitor is that they will be able to provide you with specialist advice. Making the decision to become either a franchisor or franchisee is not one to be taken lightly and so it definitely pays to be informed and make sure you have explored all of your options before taking the plunge.
For instance, franchising solicitors will be able to help parent companies decide whether to expand through franchise or whether there are other, more beneficial options that they should explore as becoming a franchisor isn’t right for everyone. Solicitors will also be able to advice would-be franchisees, making sure they know their rights and responsibilities and making sure that they have the financial ability to buy into their new business before going ahead.
Drafting new agreements
Another key role of solicitors is to draft new franchise agreements. This is really important as all agreements need to abide by UK law, European law and the relevant code of ethics. This means that agreements have quite a lot to take into consideration and so the services of specialist solicitors will be invaluable.
Reviewing and terminating agreements
Agreements also need to be reviewed from time to time to make sure that the contracts are still relevant, up-to-date and cover all appropriate eventualities. This is something else a franchise solicitor will be able to do, as well as providing assistance in the event that an agreement needs to be terminated.
Intellectual property
Intellectual property [or IP] incorporates issues such as business trade name, trademark, other branding and any other material associated with the business. This could include training materials or perhaps a particular model of business, what the code of ethics refers to as ‘know how’. It is important to get specialist intellectual property advice so that the right arrangements are in place to make sure the owner of the intellectual property (normally the parent company) is protected, but that the franchisee can also operate under the relevant brand without hindrance.
Resolving disputes
If any franchise disputes were to occur, a solicitor would also be able to assist to help resolve them, meaning that the role of the franchise solicitor is both varied and immensely important when trying to create a successful franchised business.
