Franchise Agreement

Franchising is not, in UK law, a separately regulated form of contract. But it is demanding to draft well because the agreement does several things at once. It licenses the brand and operating system; imposes operational standards and quality controls; allocates territory; handles fees, royalties, and marketing contributions; and addresses what happens at the end of the term.

What a franchise agreement does

A franchise agreement is the foundation of the franchisor-franchisee relationship. It grants the franchisee the right to operate under the franchisor's brand and business model, subject to detailed obligations on quality standards, training, operational compliance, and financial reporting.

The biggest commercial risk in franchising is brand dilution: one bad franchisee can damage the system for everyone, and the agreement must give the franchisor real tools to enforce standards and, where necessary, to terminate. From the franchisee's perspective, the agreement needs to be honest about what they are buying: a licensed business format, with restrictions, not an independent business.

Honest drafting on both sides is what makes the system work.

Example: a typical scope and fixed fee

For a single-unit franchise within the UK with a standard operating model, the typical scope looks like this.

What's included

• A consultation to understand the franchise model, fee structure, and operating requirements
• Drafting of a franchise agreement covering grant of franchise, territory, franchise fee and ongoing royalties, operations manual obligations, branding and IP, training, quality standards, reporting, duration, renewal, termination, and post-termination restrictions
• One round of revisions based on your feedback
• Final version ready for execution

What's outside this scope

• Multi-unit or master franchise agreements
• International franchise arrangements
• Drafting of the operations manual
• Pre-contract disclosure document (can be quoted separately)
• Competition law analysis
• Negotiation with the other party beyond the scope described above
• Tax advice

Fixed fee: £1,100, no VAT.

How I will approach your matter

Once you have instructed me, I will arrange a consultation to understand the franchise model, fee structure, and operating requirements before drafting. The first draft reflects the structure of the franchise system; the revision round refines the operational and quality-control mechanics.