franchising

Franchising has become increasingly common with the globalisation of business as companies seek to build their brand equity across new markets.

Franchising occurs when an established business (the franchisor)  grants a third party (the franchisee) the right to trade under its business name and to sell the products produced, or to deliver the services provided, by the existing business in return for a fee.

A franchisor will usually create franchises over defined geographical areas and the franchisee will have the right to sell the franchisor's products or services of the franchisor in that area using the brand name of the franchisor.

A franchise agreement will often have extremely detailed provisions covering items such as the following:

• the use of the franchisor’s brand;
• ownership of brand equity created during the franchise;
• product pricing; and
• marketing and advertising.

At White & Black we can guide you through the complexity of these provisions by providing specialist, commercial advice in plain English.