Franchising is a commercial arrangement under which a group of intellectual property rights are licensed for use by a franchisee. These rights require the franchisee to follow the franchisor's methods of doing business. Some of the intellectual property rights which are licensed include:
- • Patents,
- • Trade marks,
- • Trade names,
- • Copyrights, and
- • Designs.
Franchising is a business system based on a closed and sustained co-operation between the franchisor and its individual franchisees. Both parties engaged in such co-operation are independent legally and financially. This allows for the opportunity to offer existing customers additional services and increase revenues for your entity, which our team is aware is important in this current climate. The main inconvenience of this type of activity is very limited creativity and limited individual characteristics. Being a part of a larger network may result in the constant controls of quality and standards as the image of a company is reflected in the image of the brand. Also a franchise agreement can impose restrictions on the sale, or transfer of rights to the company.
We will be able to advise you on:
- • Franchise and master licence agreements
- • General considerations on structure and organisation
- • Potential risks and benefits of such activities
- • Protecting the uniform identity of the franchise
- • Unfair competition law and the EU franchise block exemption
- • Litigation, arbitration and mediation over disputes arising from the franchise