Franchise agreement

by Practical Law Commercial

A Standard Document that is a pro-franchisor franchise agreement for use in the UK, governed by the law of England and Wales. This Standard Document sets out the terms under which a franchisor grants a franchisee the right to operate a branded business. It covers the grant of the franchise licence, the duration of the agreement including the initial term and renewal rights, and the fee structure, encompassing the initial fee, ongoing franchise fees, and advertising levies. The agreement details the initial and continuing obligations for both the franchisor and the franchisee, addressing key areas such as training, brand promotion, operational procedures, accounting, and insurance. This Standard Document also addresses the licensing and protection of the franchisor's intellectual property rights, including trade marks and know-how. It contains important compliance provisions regarding anti-bribery, anti-fraud, and data protection under the UK General Data Protection Regulation (UK GDPR). Additionally, it provides mechanisms for the sale of the franchisee's business, termination rights, step-in rights for the franchisor, and post-termination restrictive covenants, along with a personal guarantee from the individual behind the franchisee company.