Knights plc

This Practice Note highlights some of the key provisions in franchise agreements and in a franchise context that help reduce the risk of disputes arising between franchisor and franchisee.

This Practice Note examines the role and remit of the British Franchise Association (the BFA) in the franchise industry in the UK. It looks at the legislative and regulatory framework in the franchise industry, the membership criteria of the BFA, the BFA’s Code of Ethical Conduct, the complaints and appeals process of the BFA, the sanctions which the BFA can impose upon its members, and the relationship between the BFA and the European Franchise Federation.

This Precedent is a franchise business sale agreement for use by an outgoing franchisee selling the business and assets of its existing franchise (the seller) to a new incoming franchisee (the buyer) and the principal franchisor. It is drafted from the perspective of the franchisor.

This Precedent letter of confirmation of legal advice is to be sent from the adviser of a franchisee to the adviser of a franchisor. It confirms that the franchisee (and the principal of the franchisee) has received legal advice in relation to the franchise agreement and in particular in relation to any onerous provisions of it.

This Precedent letter of waiver is to be sent from the franchisee to the franchisor. It confirms that the franchisee has not opted to receive legal advice in relation to the negotiation and execution of the franchise agreement and in particular in relation to seeking advice on any onerous provisions within it. The letter of waiver is executed as a deed.

This is a Checklist of issues for a franchisee to consider prior to committing to enter into a franchise agreement or purchase an existing franchise. Taking a franchise is often a substantial financial investment and long term commitment for a franchisee and it is important they fully understand what they are getting into.

This Checklist is for a franchise disclosure document or franchise verification documentation. It provides a list of the key elements for the franchisor to include within the franchise disclosure document or franchise verification documentation, to support its standing as a franchise business.

This is a Checklist for taking instructions from either a franchisor or franchisee in relation to a proposed franchise agreement.