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Documents and Agreements

In order to start trading as a bona fide UK franchisee, you'll need to go through various legal stages.

NOTE: When you reach the stage of reviewing contracts, you should appoint a bfa affiliated solicitor who will be able to advise you going forward.

The legal process will follow a number of steps, make sure you know what to expect by familiarising yourself with the legal jargon, documents and conditions contained within.

Confidentiality undertaken: In the opening discussions about the business, you may be asked by the franchisor to sign a confidentiality agreement. This is usually required if they are disclosing confidential information to you. Be aware that this doesn't restrict your right to walk away from the franchise offering.

Disclosure document: This is a document that states the facts about the franchised business – this should be detailed and comprehensive, covering aspects like:

• Full and detailed information on the trading practices of the franchise – Is the company a good ethical franchisor, looking out for your best interests?
• Information on the experience and qualifications of the people who are recruiting you – What is their background – are they professional and knowledgeable about the industry the work in?
• Precise information on how the business works – Are you being given all the information you require to make a sound judgment on the franchise opportunity?
• The rights and obligations of the franchisor – These points should be clear in your franchise agreement as to what your franchisor will provide.
• The rights and obligations of the franchisee – This should be illustrated in full in your agreement, stating your responsibilities.
• Financial and trading figures / projected results of the franchisor – As a perspective franchisee you should receive full access to the financial figures.

Franchise agreement: This document is the legal binding contract between the franchisor and the franchisee. It is a meaty document and covers the nitty-gritty detail pertaining to the obligations of the parties (franchisor and franchisee), financial intricacies, operational procedures, length and validity of contract and renewal rights.

Operations manual: This document is the format for you the franchisees to follow in the running of your business. It is binding under the terms of the franchise agreement and discloses solutions for every eventuality that should arise, from: maintaining and fixing, equipment, maximizing capacity in your operation, training employees, handling sale decreases and maintaining standards in the business

Lease agreement on premises: If you intend to operate from commercial premises, then a lease agreement will be signed between “ you ” the franchisee and the premises owner. This agreement does not include the franchisor; although in most cases your franchisor will have a clause in the likelihood that the franchise agreement is terminated they can take over the premises.

For further information on the Legal stages and the Franchise agreement , please click here

For further information on franchise disputes , please click here