Franchising

Franchise Development

Franchise Development The franchisor may grant a master franchise agreement or a master development agreement that obliges the developer to develop the franchise either by itself or through others. Development Obligations The development agreement or the development element of the franchise agreement may require that the territory, in respect of which exclusivity is granted, must be exploited by the opening of units or the grant of sub-franchises over a defined period.… Read the rest

Franchise Arrangements

Features A franchise is an agreement or arrangement to conduct a particular business in accordance with an established format, brand, technique, or model. In return, the franchisee usually pays a fee and a percentage of the sales revenue to the franchisor.… Read the rest

Franchise Agreement III

Transfer The franchisor will usually retain the right to transfer the benefit of the agreement so that it is available for its assignees. The franchisee’s rights are unlikely to be freely transferable. The franchisee may require the consent of the franchisor to sell or transfer the business or any interest in the business.… Read the rest

Franchise Agreement II

Marketing The franchisor may establish a marketing fund and require all franchisees and sub-franchisees to contribute. Franchisor’s Methods The franchisee is usually obliged to remain faithful to the franchisor’s mode of operation and methods. There may be an obligation to offer products and services designated by the franchisor from time to time and as approved.… Read the rest

Franchise Agreement I

Key Commercial Issues The franchise agreement is largely a matter of contract law. The core of the agreement is the grant to the franchisee of an exclusive or non-exclusive license to operate the franchise business, together with ancillary intellectual property rights, know-how, and assistance.… Read the rest

Competition Issues

Franchise Agreements Franchise agreements are vertical agreements under Irish and EU competition law. They are potentially compatible with competition law. They may benefit from the block exemptions for vertical agreements. They may be justified on competition law first principles, broadly on the basis that their benefits may exceed the adverse effects on competition.… Read the rest