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When should I get a Franchise Agreement and why?

Tuesday, March 19, 2024

Sam and Phillip following the success of their current business, have decided to make the next step in their entrepreneurial journey and start a franchise. The business already has pre-existing brand recognition, a customer base and set processes in place. Having these fundamentals is key for a successful franchise and the franchisor will enter into a franchise agreement with the franchisee.

Franchise Agreements

A franchise agreement is a legal document that outlining the terms, rights, and obligations of both parties between a franchisor and a franchisee. Within the agreement, the franchisor grants the franchisee the right to operate a business that uses the franchisors trademarks, systems, products, services, and other proprietary information.

Before committing to any franchise opportunity, Sam and Phillip sought the guidance of a Samuel Phillips Law to guide them through the process and draft the legal document.

As a franchisor, Sam and Phillip understands the critical importance of franchise agreements in establishing clear expectations, rights, and obligations for both parties involved. These agreements serve as the cornerstone of the franchisor-franchisee relationship, outlining key provisions related to:

  • Brand usage and standards
  • Geographical rights
  • Franchise fees and royalties
  • Training and support
  • Marketing and advertising
  • Intellectual property protection

Samuel Phillips Law were able to guide the couple with the following:

  1. Drafting and Review: Drafting franchise agreements that adhere to legal standards and best practice. Samuel Phillips Law conducted thorough reviews of the current business model, the proposed franchisee and then drafted the agreement ensuring clarity, fairness, and compliance with regulatory requirements.
  2. Intellectual Property Protection: Protecting intellectual property rights is vital for franchisors. Samuel Phillips Law helped the couple establish mechanisms for protecting trademarks, proprietary systems, and other intellectual property assets, safeguarding the integrity and value of his brand.
  3. Expansion Strategies: As Sam and Phillip expand their franchise network, Samuel Phillips Law offered strategic guidance on structuring franchise agreements to accommodate different market dynamics, geographical considerations, and growth objectives, ensuring scalability and sustainability.

You can contact Samuel Phillips Law on 0191 232 8451 or email to obtain help with drafting or reviewing your Franchise Agreement. Or if you have any queries, please get in touch!

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