A guarantee is a contractual promise to pay the liabilities of another.
When a franchise agreement is entered into between a franchisor and a corporate franchisee, such as a limited company, it is usual for the franchisor to require at least one individual, such as a company director or key shareholder, to provide a personal guarantee that they will satisfy the obligations and liabilities of the franchisee, in the event that the franchisee fails to meet those obligations and liabilities under the franchise agreement.
We are one of the leading franchise specialists in the UK with over 40 years’ experience of advising franchisors and franchisees. We are highly rated in both the Legal 500 2022 and Chambers & Partners Guide 2021 for Franchising. We act for approaching 100 franchisor brands and we have been Affiliate Members of the British Franchise Association since 1977.
We provide a complete franchise service in all aspects of franchising for both new and established franchisors and franchisees.
The franchising team is described by industry commentators as ‘exceptional in every respect’ and handles both contentious and non-contentious franchising matters.
Our franchising transactional team are recognised as second to none handling a wide range of franchise sales and acquisitions. We have a strong franchising litigation and dispute resolution practice and have been involved in many of the leading franchise sector cases in the last 15 years.
Jane Masih is recognised in the Hall of Fame in the Legal 500 2022 Guide and a Band 1 Lawyer in the Chambers & Partners Guide 2021 for Franchising.
Russell Ford is recognised as a Band 1 Lawyer in the Chambers & Partners Guide 2021 and Lynsey Smith is described as a “force to be reckoned with” in the Legal 500 2022 Guide.
In recent years our franchise team has expanded to accommodate our ever growing client base reflecting the entire franchise sector.
Acting for Franchisors
- Advising on the establishment of franchise networks including drafting franchise agreements.
- Amending and updating franchise agreements and franchise documentation.
- Overseeing and managing resales between outgoing franchisees and incoming franchisees on behalf of the franchisor.
- The enforcement of post-termination restrictive covenants against former franchisees.
- Advising on disputes with franchisees including claims for breach of contract and misrepresentation.
- Enforcement of franchisor’s intellectual property rights, including trade mark infringement and passing off.
- Acting on the acquisition of UK master licence rights.
Acting for Franchisees
- Fixed-fee Franchise Agreement Reviews.
- Advice on buying and selling existing franchise businesses.
- Advice on the sale and purchase of multi-unit franchises.
- Advising on termination of franchise agreements.
- Advising on misrepresentation issues, claims for damages for breach of contract and negligent advice by franchisors.
- Advising on premises acquisition and lease negotiations.
Acting for Action Groups
- Representing dozens of action groups of franchisees, involving allegations of breach of contract by the franchisor.
- In 2019, representing Cash Generator franchisees in their buy-out of the business and brand.
- Advising on and negotiating changes to franchise agreements proposed by the franchisor.
- Drafting Franchise and Master Licence Agreements
- Acquisition and Sale of Franchise Networks
- UK and EU Competition Law and relevant exemptions
- Franchise Resales
- Acquisition of Premises
- Trade Mark Advice and Brand Protection
- Employment and HR support
- Disputes between Franchisor and Franchisee
- Franchisee Misrepresentation Claims
- Breach of Contract and Compensation Claims
- Injunction Proceedings
- Enforcement of Restrictive Covenants including Restraint of Trade
- Franchisee Associations
- Franchise Mediation
We offer a comprehensive franchise agreement review service for all prospective franchisees. The written report outlines the principal terms and highlighting any unusual or onerous provisions. We also offer a follow-up telephone consultation to ensure that all concerns are addressed. The service is offered for a fixed fee. For further details please click below.
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