The concept of franchising is founded on the idea that a good business model can be replicated again and again. A business which has an established brand and is looking to expand its markets, or simply exploit its valuable intellectual property, can sell licences. These enable others to use the business’ brand, trade marks, patents and to trade the same products and services in much the same way. That creates a franchise, over which the original company – the head office – retains a significant level of control.
It is inevitable that the franchisor, in relinquishing autonomy, risks damaging its brand. Franchises which fail to meet standards can quickly cost a franchisor its reputation. So it’s crucial that careful thought is put into whether or not franchising is the right option for a particular business and if it’s decided that it is, the terms of any arrangement – to include training, supervision and monitoring of the franchisee - must be carefully drawn up.
O’Higgins Solicitors can advise on all aspects of franchising, including development agreements, master, regional, multiple and unit franchise agreements, property considerations, intellectual property aspects, network acquisitions and sales and disputes.
Call Kevin for a consultation on (01) 284 2420