Here at David Bigmore & Co. our Franchise Agreements are regularly approved by the British Franchise Association when our clients are seeking accreditation and re-accreditation to the BFA.
We also prepare Franchise Agreements for renewals and review Franchise Agreements prepared by other law firms to update them for recent changes in the law.
The firm has long specialised in dealing with Franchise disputes between Franchisors and Franchisees and has accumulated a vast amount of experience in this area. We have acted for numerous Franchisors in relation to solving problems and restoring peace within Franchised networks by giving considered experienced advice, thereby establishing the proper channels of communication to prevent outright hostility.
Sales and Purchases
We act for both Franchisors and Franchisees who wish to sell their businesses or the shares in their companies. By becoming involved at an early stage we seek to reduce the legal fees payable in respect of the invariable negotiations on warranties and limitations on warranties by agreeing the extent and the limits on those in advance in Heads of Agreement.
We advise on Master Franchise Agreements for both incoming and outgoing Franchises. We have long experience in negotiating favourable terms for either our Master Franchisor clients or our Master Franchisee clients.
Area Development Agreements
Area Development Agreements are, in essence, framework agreements with one Franchisee for him or her to open multiple outlets for the same Franchisor. They can involve an area of UK (or an area of a foreign country) or in some cases the whole of a foreign country.
International Franchising FranchisesMaster
International Franchising is usually effected by one or other of either a Master Licence Agreement or an Area Development Agreement. Alternatively a Franchisor may endeavour to franchise its System directly in the target country (although there can be logistical problems with this).
EU Competition law can impact upon Franchises whether they operate only in UK or in a number of countries in Europe. We have long experience in advising our clients on the effect of Article 101 of the Treaty on the Functioning of the European Union and the Block Exemption which relates to Franchise Agreements
UK Competition law can also impact upon franchises. Again we have long experience in advising our clients on the effect of the Competition Act 1998 on Franchise Agreements and the interaction with EU Competition law.
Wherever possible, if a dispute cannot be easily resolved, we endeavour to settle the Franchising dispute by recommending mediation. This is a special procedure whereby a trained mediator will discuss each side’s case confidentially with that side and endeavour by exploring with them the strengths and weaknesses of their case to bring the parties together. This is a process which can save the parties a very substantial amount in legal fees and which is successful in more than 75% of cases.
Franchise Arbitration FranchisesMaster
The arbitration process is an alternative to Franchise litigation. In the right circumstances it can provide a more convenient way of settling a case than going through the Courts.
If all else fails the parties may resort to litigation. We have long experience in applying to the High Court for interim injunctions to prevent Franchisees from competing after their Franchise Agreements have been terminated. We also have long experience in conducting litigation for both Franchisors and large Groups of Franchisees in relation to misrepresentation and breach of contract claims.
We also advise Franchisors and Franchisees in respect of leasing and sub-leasing commercial properties from which they will conduct their Franchises.