Franchising


Franchising

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. As franchising requires the franchisor to entrust its rights in the trademark, trade dress and / or products, and their reputation, to the franchisee for commercial use. Intellectual property, contract and industry-specific laws all play a significant role.

Once you begin to grant franchises, you are responsible for the success of your franchisees, for training them, and constantly improving the processes and systems of the business, so that you effectively move into the franchising business rather than what you initially started out doing.

Franchising is prevalent across many industries and the firm represents a large number of domestic and international clients in retail, hospitality, medicine, beauty and healthcare, automotive, education, real estate, and luxury and apparel sectors.

What does franchising involve?

When you franchise your operations you will give your licensees a license to:

  • use your trade mark and other elements of your branding
  • distribute and sell your goods
  • manufacture and distribute products or processes which are patented
  • use your confidential information relating to how you structure and implement your business
  • education and training programmes you have developed for your business and staff
  • use specific software for the business

A franchising contract should be drafted and reviewed on behalf of both parties by experienced lawyers to ensure that both parties’ interests are protected by the contract, and that neither party is exposed to unreasonable commercial risk.