Entries by Hamilton Pratt

What aspects of the Franchise Agreement are in the Franchisee’s Interests?

Franchise agreements are drafted by the franchisor’s legal team to protect the franchisor but, nevertheless, should contain clauses which benefit franchisees. Whilst not all franchise agreements grant exclusivity and exclusive territories are not as exclusive as they once were, knowing that there will be no competition from the franchisor or other franchisees within a defined […]

Can I see the Manual before I sign the Franchise Agreement?

The manual is an extremely important document because it contains the huge majority of a franchisor’s know how, technical information and experience. This does mean that a prospective franchisee will be able to tell a great deal about the value of the franchisor’s “System” from the manual. Nevertheless, from a franchisor’s point of view, because […]

Franchise Non Compete Clauses

All franchise agreements contain both in-term non compete clauses and post term non compete clauses. In-term restraints prevent franchisees and the principals who have established the franchise from competing during the term of the franchise agreement. Franchisees and their principals are generally also required to devote their whole time and attention to the franchised business […]

Who would be a franchisor?

The theme of this article is that the litigation tide is moving away from franchisors and that currently litigation is the biggest risk for franchisors in the UK. The article seeks to set out why that may be so. There is an inherent conflict in franchising. At the beginning of the franchise relationship the franchisor […]

What are the Key Legal Terms used in Franchising

There are a number of important terms that pretty much all franchise agreements use. Often these terms are defined in the agreement because they are used several times in the agreement itself. The purpose of this article is to look at the likely meaning of these terms although, in all cases you should look at […]

Non Compete Covenants

As every franchisor knows having effective non compete covenants is essential to maintain the integrity of a franchise system. These non compete provisions are often the most litigated clauses in franchise agreements. Generally non compete covenants in UK franchise agreements last for the duration of the franchise agreement plus a year and relate to the […]

What to consider when dealing with a Franchisor

As a prospective franchisee there are several things that you should bear in mind when you first make contact with a franchisor: How much do you actually know about the franchisor and its business? – Do your research! Although the franchisor is the “big guy” don’t be afraid to ask questions. You need to be […]

Why is a brand so important in Franchising?

There are four basic elements of a franchise and one of these is the right to use the franchisor’s brand. A brand is a key component yet one that is often overlooked by prospective franchisees. A brand is something that differentiates one business or trader from another. It can be a name, a symbol, or […]

Legal Aspects to consider before Investing in a Franchise

Investing in a franchise is an important step that should not be taken lightly because it is not cheap and it will require your long-term commitment. Therefore, as with any long-term commitment, there is a lot that you should consider before you sign on the dotted line including finances, your family’s support, your ambition and […]