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Commercial Contracts

Franchising & Outsourcing

Franchising & Outsourcing

Franchising requires secure contracts which address likely potential disputes. Common issues are mis-selling, where a buyer is told of a higher demand or exclusivity. Additionally, there may be an issue with a franchise holder taking actions which threaten to damage the franchise network.

At Monarch Solicitors, we can help ensure you are aware of all the relevant terms of a contract and their consequences. We can review and draft a contract to ensure it does what you want it to do. We can also:

  • Advise on the scope of operations manuals
  • Advise on data protection
  • Ensure you have the appropriate group structure
  • Help to resolve disputes between franchisors and franchisees

Contact our Corporate Solicitors:

If you would like to enquire for any matters regarding franchising please complete our online contact form here or send an email to us at [email protected] and one of our solicitors shall call you back.

Alternatively, please call our corporate solicitors in Manchester on 0330 127 8888 for a no obligation discussion.

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FAQ

Most frequent questions and answers

In simple terms, franchising is the granting of various rights by one party (the franchisor) to another (the franchisee), which are sufficient to enable the franchisee to develop and operate a “clone” of the franchisor’s business concept in return for payments to the franchisor. The franchisee then exercises those rights and runs its business under the guidance of the franchisor.

Yes. The Operations Manual is the embodiment of the knowhow and approach to all key aspects of the operation and marketing of the franchised business. Ultimately it is what the franchisee is paying to see and use. It is therefore of paramount importance that the franchisor invests in creating and developing an Operations Manual that captures all operational aspects of the business and sets out its standards, policies and requirements.

The fees charged by a franchisor should reflect the commercial bargain between the two parties. Care should be taken that the business remains financially viable for the franchisee and that any upfront fees do not inadvertently starve the franchise of much needed start-up capital investment.

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