Franchise Agreement

The principle of the franchise arrangement is that the franchisor (equating here to, but in no way acting as, the employer) provides work or business for a franchisee. The franchisee does not become the employee of the franchisor (the principal), and although the principal may lay down certain modes of operation of the work of the franchisee, the latter can manage the business as he/she wishes, thus having profit responsibility.

Where the business has a high national or international profile, it will usually be the case that a capital sum will have to be paid by the franchisee to the principal. The franchisee will then usually have full purchasing, sales and profit responsibility and the possibility of an employer-employed relationship does not apply.

However, in other circumstances, a principal may wish to set up an arrangement whereby the franchisee effectively manages the business and is paid a fee for so doing. Purchasing may be undertaken by the principal as requested by the franchisee, whilst sales income and profit accrue to the principal. In such circumstances the relationship is more likely to be confused with that of employer and employee and needs to be controlled by a carefully worded agreement.

The 'Bedfords' Franchise Agreement is;

drafted and approved by qualified solicitors

valid for use in England and Wales

ready to use as drafted

suitable for use by businesses of any size

fully editable and re-usable as a Microsoft Word document

The price INCLUDES:

Guidance Notes

Legal and technical support