You have worked hard to build your business and need to ensure it is protected when you start franchising. Our experienced franchise lawyers will work with you to create franchise agreements that meet your needs and are also fully compliant with the Franchising Code of Conduct.
The franchise agreement is the foundation of your franchise system. This document specifies the guidelines and policies around every aspect of the franchisor-franchisee relationship. The franchise agreement is a legally binding document in which your franchisees are granted rights to use your brand, intellectual property and systems for a specified period. The franchise agreement must be carefully constructed so that you are able to fully deliver on your franchising strategy, while also being flexible enough to accommodate a dynamic and changing business environment. This balance can be difficult to achieve, and in fact franchising is one of the most complex business models to execute successfully. Your franchise agreement must be specially tailored to suit your individual business requirements. Your business is unique, and you have your own systems and processes to ensure efficiency and consistency. This must be communicated clearly to every franchisee, so you can continue delivering on your promises to franchisees and customers.
A generic franchise agreement will not be tailored to your business and will do more harm than good if it is not consistent with your actual business practices. For example, you may have conferences or regular meetings with franchisees, and the costs of these conferences may have to be paid for separately by franchisees. If this is not incorporated into the agreement, franchisees may argue that they are not obliged to attend. There are many other examples such as this where the agreement must be tailored to suit your particular business model. Territory allocation, competitive restraints, post-termination acquisition, first rights of refusal, allocation of Internet sales and control of social media are just a few others that our franchise lawyers are experienced in dealing with. We can help you create a sound franchise agreement that will protect the interests of your business. Feel free to contact one of our experienced lawyers to discuss your franchise business.