Welcome to our November franchise bulletin.
We hope autumn has proved to be a busy month for you on the back of the recent franchise exhibition. This exhibition demonstrated the considerable interest in this sector. In this issue we focus on areas that have kept our team busy recently in particular (1) managing disputes and (2) social media and your employees - both key topics at the moment.
Fiona Boswell
0845 070 3812
fiona.boswell@freethcartwright.co.uk
1 Unless it’s in the contract it’s not part of the deal
Once you have decided to take on a franchise, your formal appointment as a franchisee is recorded in a franchise contract. This contract should contain all the key details about your franchise. From the simple facts - the name - to the key points eg. your territory and fees. If something isn’t covered it can be quite difficult, (and in some cases impossible), and certainly very costly to make a franchisor honour promises made but not recorded in the contract.
TOP TIP - Before you sign up to a franchise contract make sure it contains everything that you have agreed with the franchisor.
1 It’s all in the Brand
Your brand is key to your success as a franchisor. It is what attracts potential franchisees to your business. Your brand must be defined, consistent and adequately protected.
TOP TIP - Get an audit of your brand portfolio and register trade marks
Welcome to our latest franchise bulletin
We hope you had a good summer break. In this issue we focus on: how to win liquidated damages claims, the latest legal developments that you should be aware of, and upcoming franchise events.
Fiona Boswell
0845 070 3812
fiona.boswell@freethcartwright.co.uk
A recent case concerning an insolvency in the fashion industry has highlighted that some businesses may not have the protection which they expect from their retention of title clauses1. Your sales contracts should contain provisions that help to reclaim products if a customer or franchisee becomes insolvent.
A recent case¹ has highlighted the reluctance of the courts to intervene in “rewriting” these clauses to make them enforceable. This means it is even more important to ensure that your restrictive covenants are reasonable.
Franchisors - you need to know that your restrictive covenants can be relied on, when needed.
Franchisees - you need to know how restricted you really are if you want to get out of your franchise.
A recent case¹ has highlighted the reluctance of the courts to intervene in “rewriting” these clauses to make them enforceable. This means it is even more important to review your contracts regularly.
Franchisors - you need to know that your restrictive covenants can be relied on, when needed.
Franchisees - you need to know how restricted you really are if you want to get out of your franchise.
The Bribery Act 2010 was introduced to strengthen the existing bribery and corruption laws in the UK.
Government sources have recently confirmed that the Act is unlikely to come into force in April, as previously announced but because it is significantly wider than the current law, when it comes into force, possibly in May, it will have implications for all businesses.
