Franchise Agreements
Business & Commercial
Expert Legal Advice for Franchise Agreements in Newcastle
At Burgess Thomson, we offer clear, practical legal advice to anyone considering entering into a franchise agreement. Whether you’re a prospective franchisee, a small business owner considering buying a franchise, or navigating the complexities of a franchise contract agreement, our experienced team can help ensure your rights and interests are protected from the outset.
Franchising can offer a fast-track to business ownership with the support of an established brand and system, but it also comes with significant legal obligations. That’s why it’s essential to seek legal advice before you purchase a franchise.
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What Is a Franchise Agreement?
A franchise agreement is a legally binding contract between a franchisor (the business granting the franchise) and a franchisee (the individual or company granted the right to operate under the brand). This agreement governs the relationship between the two parties and outlines the rights, responsibilities, and expectations of both.
A typical franchise contract agreement includes provisions relating to:
- Use of brand name, trademarks, and systems
- Territory and exclusivity
- Fees, royalties, and ongoing payments
- Training and operational support
- Duration and renewal of the agreement
- Termination and dispute resolution clauses
- Obligations of the franchisee to uphold brand standards
At Burgess Thomson, we can review your franchise agreement before you sign, helping you understand the full scope of your obligations and identify any unfair or high-risk terms.
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Buying a Franchise: What You Need to Know
Buying a franchise is a significant investment, both financially and legally. While it offers a business model with built-in support and recognition, it also means operating under strict controls imposed by the franchisor. Before you commit to a franchise contract agreement, it’s crucial to understand the risks and ensure the arrangement aligns with your personal and business goals.
Our legal team provides guidance on:
- Reviewing the franchise agreement and disclosure documents
- Assessing financial and operational commitments
- Understanding your obligations under the Franchising Code of Conduct
- Negotiating key terms to reduce your risk
- Managing your responsibilities as a franchisee
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We also assist with structuring the purchase and liaising with accountants or business advisors where required to ensure your purchase franchise transaction is set up for success.
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Protecting Your Interests as a Franchisee
Many people purchase a franchise assuming the agreement will be standard or non-negotiable. While franchisors often use template contracts, there may still be room to negotiate terms such as territory rights, performance expectations, or renewal clauses.
Our team will:
- Conduct a thorough review of your franchise contract agreement
- Explain all key terms and financial commitments
- Advise you on risk areas such as restraint of trade clauses or default penalties
- Help ensure you understand your rights and options as a franchisee
We’re here to protect your interests before you commit, because once a franchise agreement is signed, it’s difficult and costly to unwind.
Why Choose Burgess Thomson?
With decades of experience advising clients across Newcastle on franchise agreements, we understand the intricacies of the franchising landscape. We combine deep legal knowledge with commercial insight to deliver advice that’s both technically sound and commercially relevant, providing:
- Franchise Law Expertise: Our team has advised numerous clients on franchise agreements, from reviewing new franchise documentation to handling disputes and exit strategies.
- Local Knowledge with National Reach: Although based in Newcastle, we work with clients buying into national and international franchise systems.
- Personalised, Practical Advice: Every franchisee is different, and we tailor our guidance to suit your individual needs and risk appetite.
- End-to-End Legal Support: Whether you’re buying a franchise, renewing a franchise contract agreement, or dealing with a dispute, we offer legal support across the entire franchise lifecycle.
Contact Us for Franchise Agreement Legal Advice
Before you sign a franchise agreement, speak with our team at Burgess Thomson. We’ll give you the peace of mind to proceed confidently with your purchase franchise journey.
Contact us today for a fixed-fee quote or to book a consultation with an experienced business and commercial lawyer.
Make sure your franchise agreements are structured to protect your investment and set your business up for long-term success.
Frequently asked questions
What are franchise fees and royalties?
A franchise fee can include the up-front amount paid to the franchisor for the use of their name and brand, and operating systems. Ongoing fees and royalties are usually paid to the franchisor for providing ongoing business, management, and technical support.
What documents must a franchisor give the franchisee before entering a franchise agreement?
A franchisor must give a franchisee an Information Statement about franchising once an interest in the franchise is shown. A franchisor must also give:
- The Franchising Code of Conduct- this is an industry code all franchisors and franchisees must follow;
- A disclosure document โ this document contains information about the franchise. It includes information to help the franchisee make a reasonably informed decision about whether to buy the franchise;
- The franchise agreement (in its final form).
The franchisor must give the franchisee these documents at least 14 days before the agreement is signed or a non-refundable payment is made. This allows the franchisee to have at least 14 days to read over them and can take more time if they need.
When reading over these documents, Burgess Thomson can give advice on any supply restrictions, or on the purchase price of the franchise and the costs to run it.
Can I change my mind after I enter a franchise agreement?
You can change your mind within seven days after signing or paying money under the agreement. This is referred to as your right to โcool offโ. However, if you buy a franchise and change your mind a year later, it will be costly to end the franchise agreement early. If you have paid money to the franchisor but change your mind within the seven days, the franchisor can keep your money if:
- This is included in the franchise agreement; and
- The money is for reasonable expenses.
The franchisor must give the remainder of your money within 14 days.