Franchising

We have acted and continue to act for a number of franchisors and have experience of advising at both a transactional and day-to-day level.

We have advised clients on the strategic and practical implications of establishing a franchise and, for clients with an existing franchise arrangement, have advised on the expansion of the network including issues relating to financing franchisee growth. We have drafted franchising agreements for a wide variety of businesses adopting both a 'standard form' and 'template' approach (the latter being appropriate in cases where the franchising agreement is intended to be used in more than one jurisdiction).

Looking after our franchisor clients' day-to-day legal problems necessarily entails a breadth of specialist franchising experience and we have been involved at every level, from brand protection and franchisee default to the implementation of new franchisee IT systems.

Franchising

We can advise on:

Franchise agreements
Operations manual
Property leases
Fit-outs and refurbishments
Supply contracts
Distribution agreements
Licensing agreements
Advertising and marketing
Franchisee trust accounts
Intellectual property rights
International expansion
Tax structuring
Restrictive covenants
Exclusivity provisions
E-commerce, online contracts, and social media
Employment issues
Franchisee due diligence

Franchising

The firm has wide experience of franchising and, in particular has been consulted on a number of more unusual franchises.

We acted for Cash Converters, a franchised pawn broking business, on its UK expansion programme, and Cash Converters now has in excess of 120 UK franchised stores. We acted on the acquisition of the UK business, carrying out a full due diligence review of the franchised business, also subsequently revised the standard franchise agreement, incorporating relatively innovative financial arrangements including for the investment of franchisee renewal fees and a cheque cashing business.

We also acted for both Inter-Alliance PLC and Lifetime Group PLC on the establishment of their respective franchised networks of independent financial advisors.

We advised easyCar on the franchising of its car rental business throughout Europe including the conversion of company-owned outlets to franchises run by the previous managers of those outlets (so-called "retro-franchising").

We advised Mezzo Limited, the Conran-owned restaurant company, in its franchising arrangements for the 'El Floridita' Cuban restaurant and associated 'Habanos' cigar franchise.

The firm has also acted for franchisees on a number of occasions, including acteding for a large number of Circle C franchisees when the Circle C franchise was acquired by Watson & Phillips who sought to impose their own standard form of Franchise Agreement used for their "Alldays" franchise. Many Circle C franchisees were unhappy with the unilateral imposition of new franchise agreements and the firm was able to successfully achieve the mutual termination of certain franchises with compensation being paid to franchisees and enhanced future buyout provisions for other franchisees.

The firm acts for a wealthy Middle Eastern investor who has acquired multiple franchises for a number of fast food outlets operating in the London area, including from Baskin Robbins and Dominos Pizzas.

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Franchising

"LG has a longstanding involvement in franchising matters, arising out of its brands practice and extending into licensing matters." – The Legal 500 UK