Franchise Solicitors

Our bespoke service provides our clients with invaluable assistance in negotiating a franchise on favourable terms.

We have specialist Franchise Solicitors within our Corporate team to assist you with all your legal services for Franchising.

Our BFA-accredited lawyers are highly skilled and experienced in advising on all aspects of Franchising laws, including advising franchisors setting up a franchise network or franchisees opening a new franchise.

What is Franchising?

Business franchising involves an established business (known as the franchisor) granting a license to another individual (known as the franchisee), entitling the franchisee to trade as their own businesses under the franchisor’s brand.

Why Franchise?

Proven to be a fast growing sector, many new business owners are turning to franchising as a way to secure a low risk start up business, which avoids the usual initial costs of starting a new business and benefits from an already established brand with continued support from a franchisor.

Established business owners are increasingly turning to franchising to achieve organic growth in terms of territory and revenue. Many franchisors are reaping the benefits of increased brand reputation from setting up national franchise networks with the additional support of the franchisees.

Our Franchise Solicitors regularly advise on:
  • Reviewing and negotiating franchise agreements
  • Advising on establishing franchise networks
  • Drafting and reviewing operations manuals
  • Disputes between franchisors and franchisees
  • Franchise contracts and employment advice
  • Franchise data protection
  • Franchise sub-lease agreements

Our expertise in franchising enables us to provide our clients with up to date market advice and solutions which are proportionate to the business risks posed to them as well as ensuring that they are within budget.

Our bespoke service provides our clients with invaluable assistance in negotiating a franchise on favourable terms, whether we’re acting for the franchisee or the franchisor, rather than merely just attending to drafting the legal documentation. Our expert team add sector specific value, which is why our clients stay with us.

Joel Gocool specialises in advising on and negotiating franchise agreements. Joel has a wealth of experience in identifying the key considerations a franchisee should make before starting a new franchise venture.

Contact us

Request a video call, phone call or a meeting in person with one of our Franchise solicitors...

    The reCAPTCHA verification period has expired. Please reload the page.

    BFA Trusted Member
    Herrington Carmichael is a trusted member of the British Franchise Association.

    Franchise Law FAQs

    What is a Franchise Agreement?

    The Franchise Agreement contains the principal terms upon which the franchise will be granted and governs the legal relationship between the parties. It includes:

    1. The term of the Franchise Agreement and renewal provisions;
    2. The payment obligations of the franchisee;
    3. The training demands of the franchisor;
    4. The termination provisions;
    5. The resale provisions of the franchise.

    A franchisee should always review the provisions of the Franchise Agreement in depth before signing the agreement, since they will be unable to alter the terms of the Franchise Agreement post signing, without the franchisor’s consent (which is unlikely to be forthcoming). It is important for the franchisor to keep the intended business relationship in mind whilst carrying out a review of the Franchise Agreement, because franchisors typically utilise template documents across their franchise network which may not necessarily reflect the intended agreement.

    What is a franchise Operations Manual?

    The Operations Manual governs the day to day running of the business. It contains the methodology and quality control provisions that the franchisee must adhere to whilst operating the franchise. Given that the document contains commercially sensitive business “know how”, a franchisor usually requires the franchisee to sign a confidentiality agreement prior to disclosing a copy of the Operations Manual.

    The operations manual is usually an evolving document which can change over time when business processes are streamlined or refined. The franchisee should be comfortable with the overarching principles set out in the Operations Manual prior to signing the Franchise Agreement. Breaching the Operations Manual can also lead to a breach of the Franchise Agreement which could trigger numerous adverse consequences, including termination the Franchise Agreement.

    What should a franchisee consider when reviewing a Franchise Agreement?

    The key considerations for franchisees when reviewing a Franchise Agreement are summarised below.

    1. Personal Guarantee

    The personal guarantee will likely cover both the financial obligations and the performance obligations of the Franchisee.

    2. Franchisee Fees

    Initial Fee
    An Initial Fee will usually be due upon signing of the franchise agreement.

    Service Fee
    The Service Fee is calculated as a percentage of the franchisee’s gross monthly receipts.

    Advertising Levy
    The Advertising Levy is often set at around 2.5% of Gross Monthly Receipts.

    3. Territory

    The Franchisee should ensure it is granted exclusive right to trade in a particular location in the Franchise Agreement.

    More information about key legal considerations when reviewing a Franchise Agreements, can be found in this following article ‘Key legal considerations for Franchisees‘.

    Franchise Agreements and the UK’s new Vertical Block Exemption

    Franchisors and franchisees need to be prepared for the changes imposed by the legislation but also aware of the opportunities it presents.

    A Franchisor’s Guide to Setting up a Franchise Network

    Business franchising involves an established business allowing a third party to trade as their own businesses under the franchisor’s brand.

    What is a franchise Operations Manual?

    When taking a franchise, the franchiser will provide the franchisee with two key documents; the Franchise Agreement and the Operations Manual.

    Key legal considerations for Franchisees

    There are numerous considerations that a franchisee should make when reviewing the Franchise Agreement, which are summarised in this article.

    What is a Franchise Agreement?

    When taking a franchise, the franchiser will usually provide the franchisee with two key documents; the Franchise Agreement and the Operations Manual.

    Introduction to Franchising

    The market research carried out by BFA proves that franchising is an effective and profitable method of establishing a business.

    Franchise Solicitors Team

    • All departments
    • Agricultural Law
    • Brexit
    • Careers
    • Co Co - Employee Share Schemes
    • Co Co - Recovery & Insolvency
    • Co Co - Restructuring
    • Co Co Corporate Governance
    • Co Co Corporate lending
    • Co Co Financial Services
    • Co Co Franchising
    • Co Co GDPR
    • Co Co in-house legal support
    • Co Co International Contracts
    • Co Co M&A's
    • Co Co MBOs & MBIs
    • Co Co Partnership and LLPs
    • Co Co Regulatory, Compliance & Competition
    • Co Co Shareholders Agreements
    • Co Co Terms and Conditions
    • Co Co- Intellectual Property
    • CoCo - Banking and Finance
    • CoCo - New Businsess
    • CoCo Competition Law
    • CoCo Consumer Law
    • CoCo Data Protection - Marketing
    • CoCo Data, IT & Technology
    • Commercial Law
    • Commercial Property
    • Construction
    • Corporate & Commercial
    • Corporate Law
    • Debt Recovery
    • Dispute Resolution
    • Disputes - Business
    • Disputes - Declarations of trust
    • Disputes - Probate and inheritance
    • Disputes - Professional negligence
    • Disputes - Restrictive Covenants
    • Disputes - Shareholders & Partnership
    • Disputes - Tenants in Residential Property
    • Disputes - Wills, trusts & probate disputes
    • Disputes and Small Claims
    • Disputes Construction
    • Disputes with Co-owners
    • Divorce
    • Employee - Termination
    • Employer - Termination
    • Employment
    • Employment - Business protection
    • Employment - Collective consultations
    • Employment - Contracts, services, consultancy
    • Employment - Employee benefits
    • Employment - Employee Procedures
    • Employment - Equality, discrimination and harassment
    • Employment - Family Friendly Rights
    • Employment - GDPR and Data Protection
    • Employment - Post employment obligations
    • Employment - Redundancy & Reorganisation
    • Employment - Settlement Agreements
    • Employment - Tribunal Claims
    • Employment - TUPE
    • Employment - Wages, holiday and sick pay
    • Employment - Workers rights
    • Employment Tribunal claims
    • Estate Administration
    • Expat Legal Services
    • Family Law
    • Financial Services
    • GDPR
    • Help to Buy
    • Immigration law
    • International Legal Services
    • Key Property Contacts
    • Land and Property Disputes
    • Land, development and construction
    • Lasting Powers of Attorney
    • Leasehold
    • Licensing Law
    • Money, Tax and Inheritance
    • New Build Conveyancing
    • Private Wealth and Inheritance
    • Professional Negligence
    • Property Finance
    • Property Law
    • Residential Property
    • Residential Property - Completions
    • Residential Property - Shared Ownership
    • Trainee Solicitor
    • Wills, Trusts & Probate

    Latest Insights

    Herrington Carmichael has been advising families and businesses for over 175 years. We provide an increasingly specialist legal practice – we offer a wide range of services, beyond that of a traditional private client firm to meet the demands of our UK and international clients.

    Award winning legal advice

    Herrington Carmichael offers legal advice to UK and International businesses as well as individuals and families. Rated as a ‘Leading Firm 2024’ by the legal directory Legal 500 and listed in The Times ‘Best Law Firms 2023 & 2024’. Herrington Carmichael has offices in London, Farnborough, Reading, and Ascot.

    +44 (0)1276 686 222


    Brennan House, Farnborough Aerospace Centre Business Park, Farnborough, GU14 6XR

    Reading (Appointment only)
    The Abbey, Abbey Gardens, Abbey Street, Reading RG1 3BA

    Ascot (Appointment only)
    102, Berkshire House, 39-51 High Street, Ascot, Berkshire SL5 7HY

    London (Appointment only)
    60 St Martins Lane, Covent Garden, London WC2N 4JS

    Privacy Policy   |   Legal Notices, T&Cs, Complaints Resolution   |   Cookies  |   Client Feedback   |  Diversity Data



    Our Services

    Corporate Lawyers
    Commercial Lawyers
    Commercial Property Lawyers
    Conveyancing Solicitors
    Dispute Resolution Lawyers
    Divorce & Family Lawyers
    Employment Lawyers
    Immigration Law Services
    Private Wealth & Inheritance Lawyers
    Startups & New Business Lawyers

    Pay Online >

    Please be aware that we have no plans to change our bank details. If you receive any indication that any of our bank details have changed please contact us before sending us any funds. We take no responsibility for monies you transfer into the wrong bank account.

    © 2023 Herrington Carmichael LLP. Registered in England and Wales company number OC322293.

    Herrington Carmichael LLP is authorised and regulated by the Solicitors Regulation Authority with registration number 446245.