{"id":186113,"date":"2024-01-30T16:13:38","date_gmt":"2024-01-30T16:13:38","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=186113"},"modified":"2025-08-12T07:23:35","modified_gmt":"2025-08-12T06:23:35","slug":"franchises-structured","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/franchising\/franchises-structured\/","title":{"rendered":"How Are Franchises Structured?"},"content":{"rendered":"\n

If you are considering franchising your business, you will be thinking about how to structure your franchise arrangements. You can choose between multiple structures; deciding between them is integral to your franchising journey. This article explains how franchises are structured and examines the business models available within franchising.<\/p>\n\n\n\n

Franchising<\/h2>\n\n\n\n

The franchise model allows entrepreneurs to own and manage a business under the umbrella of an established brand. This reduces some risks associated with starting a new business<\/a> from scratch and building its brand from the ground up. <\/p>\n\n\n\n

There are legal structures for businesses in the UK. However, a franchise structure is a business model rather than a legal structure. Your business will have a legal structure and so will those of your franchisees. <\/p>\n\n\n\n

The franchising model involves a franchisor granting a franchisee the right to use their established business model. If you franchise your business, you will allow the franchisee to use your branding, products, and services in exchange for an upfront cost and ongoing fees. This is the essence of the franchising business model. <\/p>\n\n\n\n

Franchise Relationship Structure <\/h2>\n\n\n\n

A franchise is a separate business from the umbrella of the franchised business. If you franchise your business<\/a>, the franchisee will sign a franchise agreement, which allows them to set up a company that operates under your brand\u2019s name and operating system. The franchisee would then set up their franchise with your help. This allows you to expand your brand<\/a> without burdening yourself with the day-to-day functions of the franchises. <\/p>\n\n\n\n

A franchise agreement forms the basis of your arrangement with each franchisee. This contract is legally binding on both you as the franchisor and the franchisee. Multiple franchise agreements form a network of franchises that operate independently from one another but under the umbrella of your brand. <\/p>\n\n\n

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Buying a Franchise in the UK: A Legal Guide<\/div>\n
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Buying a franchise in the UK? Download this free legal guide to make informed decisions and avoid pitfalls.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Take Costa Coffee, one of the most popular UK franchises. Each unit of Costa is a separate business, but it operates under the Costa brand umbrella. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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