Franchise Agreements

We handle all levels of Franchise Agreements for our clients.

Franchising is an arrangement between the franchisor and the franchisee. The franchisor owns the right to the name or trademark of the business whilst the franchisee, upon entering into the franchise will receive the right to use the trademark and system of the business. However, as with any relationship, there are responsibilities. These responsibilities have to do with both the franchisors and the franchisee’s commitments and obligations towards each other which should be stated in the franchise agreement.

These responsibilities include inter alia as follows:

The Franchisor will:

• Provide an established, tested and proven business system.
• Have an established, registered name, brand and trade-mark which is recognisable.
• Allow the Franchisee to replicate the concept in order to grow the business and the brand.
• Provide experience, training and support services.
• Expand his network cost-effectively.
• Benefit from franchisees’ financial investment in acquiring the franchise.

The Franchisee will:

• Benefit through a business start-up based on a ready made business package.
• Buy the right to use the franchisor’s trade-name, trade mark and proven business model/concept.
• Follows the franchisor’s standards, methods, procedures, techniques and marketing methods in managing his/her franchise in a particular area.
• Market the brand, work according to the franchisors normal operating system and use the support system to attract and retain customers/clients.
• Pay a fee to the franchisor for the right to use the trademark, name and business systems/models. This fee is referred to as the management service fee (or royalties).
• Contribute to the marketing of the trademark and business system.
• Be provided with an outline on how to succeed in an independent business.
• Invests capital, time and effort to replicate the business according to the franchisor’s system.