Site Map
New Franchisors - Other Agreements
Often franchisors need other agreements as well. They will certainly need a franchise manual which sets out the day to day requirements for franchisees. We have a checklist for this as well. Unlike the franchise agreement we won’t prepare the franchise manual but will, if required, work with your consultant to ensure that it does not conflict with the franchise agreement.
Franchisors provide prospective franchisees with a great deal of confidential information and therefore may need their franchisees to enter into a confidentiality agreement. A would-be franchisee may want to reserve a territory and pay a deposit – franchise purchase agreements deal with this.
On the property side franchisors often take a lease and grant their franchisees a sub-lease. When a sub-lease is granted it is usually necessary to exclude the Landlord & Tenant Act so that a franchisee does not have security of tenure and thereby remain in the premises after the franchise agreement terminates. We can give advice on the use of licences or trust arrangements to reduce potential security of tenure issues. If a franchisor does not want to take on any property liabilities franchisees may be required to enter into a deed of option which effectively give franchisors the ability to take over premises when the franchise comes to an end.
Previously, franchisors frequently require franchisees to enter into a registered licence agreement in relation to their use of the franchisor’s brands and trade marks. These have now largely been abandoned in a franchise context but we can explain the pros and cons.
Finally, you may need terms and conditions of sale, software licences and other more general commercial agreements.