{"id":194856,"date":"2025-10-22T05:15:02","date_gmt":"2025-10-22T04:15:02","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=194856"},"modified":"2025-10-22T06:09:44","modified_gmt":"2025-10-22T05:09:44","slug":"how-to-franchise-your-business-in-the-uk","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/","title":{"rendered":"How to Franchise Your Business in the UK"},"content":{"rendered":"\n<p>This webinar provides comprehensive guidance for business owners considering franchising their business in the UK. Presented by LegalVision&#8217;s franchising and corporate law experts, Harmanjot (Associate, Corporate and Commercial Team) and Paul (Senior Associate, Franchising Team), this session covers the essential legal and commercial considerations for establishing a successful franchise network. From assessing whether your business model is suitable for franchising through to drafting franchise agreements, this webinar equips business owners and in-house counsel with the knowledge needed to franchise effectively whilst protecting their valuable intellectual property and minimising legal risk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Topics Covered:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Commercial considerations when deciding whether to franchise your business<\/li>\n\n\n\n<li>Optimal corporate structures for franchise networks<\/li>\n\n\n\n<li>Trademark registration and intellectual property protection<\/li>\n\n\n\n<li>Developing systems, processes, and operations manuals<\/li>\n\n\n\n<li>Essential contracts for franchise networks<\/li>\n\n\n\n<li>GDPR and data protection compliance<\/li>\n\n\n\n<li>Key provisions in franchise agreements<\/li>\n\n\n\n<li>Franchise fees and ongoing charges<\/li>\n\n\n\n<li>Territory mapping and expansion strategies<\/li>\n<\/ul>\n\n\n\n\n\n<h2 class=\"wp-block-heading\">Is Franchising Right for Your Business?<\/h2>\n\n\n\n<p><strong>Paul:<\/strong> To begin, becoming a franchisor quite often starts with asking yourself a number of questions about your business. Franchising is not suitable to every business model, and a good franchise system is one that is well thought out in advance. Let us look at some of those questions now.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Firstly, <strong>is my business model distinctive and replicable?<\/strong> This involves thinking about whether your business model would perform just as well in a completely different location with completely different people leading it. We always suggest you trial a second location to test this idea. If a manager can replicate your success by following your model, this is a good indication that your business is suitable for franchising, as it is not heavily reliant on a particular person or location demographics.<\/li>\n\n\n\n<li>Secondly, <strong>will I be able to manage, train and support a franchise network?<\/strong> Operating a franchise requires franchisors to pivot into a new kind of role, being a training and management role. Training and support of franchisees is both essential and time-consuming, and the time involved should not be underestimated. The best franchise systems are those that have a clear and learnable system and invest in training, retraining, support and growth of their franchisees.<\/li>\n\n\n\n<li>Thirdly, <strong>do I have the relationships with suppliers and manufacturers that can support my growth?<\/strong> It is essential as a franchisor that your suppliers can actually supply your network. Franchisors are well placed to source quality products at cost-effective rates, and this is essential for your franchisees who can then focus on growth.<\/li>\n<\/ol>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>If the answers to these questions are no or show that more work needs to be done, this is often a good thing. It is much easier to take stock, plan, and revise before you have a franchisee than after they are on board. A franchise consultant can be a great asset to you for these kinds of feasibility questions early on.<\/p>\n<\/div>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.\"),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(\"gform_main_scripts_loaded\",()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(\"gform\/theme\/scripts_loaded\",()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(\"DOMContentLoaded\",()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(\"action\",o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(\"filter\",o,r,e,t)},doAction:function(o){gform.doHook(\"action\",o,arguments)},applyFilters:function(o){return gform.doHook(\"filter\",o,arguments)},removeAction:function(o,r){gform.removeHook(\"action\",o,r)},removeFilter:function(o,r,e){gform.removeHook(\"filter\",o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+\"_\"+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){\"function\"!=typeof(t=o.callable)&&(t=window[t]),\"action\"==r?t.apply(null,e):e[0]=t.apply(null,e)})),\"filter\"==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});\n<\/script>\n\n                <div class='gf_browser_gecko gform_wrapper gravity-theme gform-theme--no-framework lawyer-form_wrapper gplaceholder_wrapper form-with-labels-no-asterisks_wrapper has-new-validation-error-styling_wrapper' data-form-theme='gravity-theme' data-form-index='0' id='gform_wrapper_2453' style='display:none'><div id='gf_2453' class='gform_anchor' tabindex='-1'><\/div><form method='post' enctype='multipart\/form-data' target='gform_ajax_frame_2453' id='gform_2453' class='lawyer-form gplaceholder form-with-labels-no-asterisks has-new-validation-error-styling' action='\/api\/wp\/v2\/posts\/194856#gf_2453' data-formid='2453' novalidate>\n                        <div class='gform-body gform_body'><div id='gform_fields_2453' class='gform_fields top_label form_sublabel_below description_below validation_below'><div id=\"field_2453_1000\" class=\"gfield gfield--type-honeypot gform_validation_container field_sublabel_below gfield--has-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_1000'>LinkedIn<\/label><div class='ginput_container'><input name='input_1000' id='input_2453_1000' type='text' value='' autocomplete='new-password'\/><\/div><div class='gfield_description' id='gfield_description_2453_1000'>This field is for validation purposes and should be left unchanged.<\/div><\/div><div id=\"field_2453_1\" class=\"gfield gfield--type-text gfield--input-type-text gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_1'>First Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_1' id='input_2453_1' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_12\" class=\"gfield gfield--type-text gfield--input-type-text gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_12'>Last Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_12' id='input_2453_12' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_2\" class=\"gfield gfield--type-email gfield--input-type-email gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_2'>Email Address<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_email'>\n                            <input name='input_2' id='input_2453_2' type='email' value='' class='medium'    aria-required=\"true\" aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2453_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2453_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2453_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' selected='selected'>Select ...<\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2453_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_4'>Tell us about your enquiry<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_textarea'><textarea name='input_4' id='input_2453_4' class='textarea medium'     aria-required=\"true\" aria-invalid=\"false\"   rows='10' cols='50'><\/textarea><\/div><\/div><div id=\"field_2453_5\" class=\"gfield gfield--type-html gfield--input-type-html gfield_html gfield_html_formatted gfield_no_follows_desc field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  >By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. View our <a href=\"https:\/\/legalvision.co.uk\/privacy-notice\/\" target=\"_blank\">Privacy Policy<\/a>. <\/div><div id=\"field_2453_8\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_2453_8' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='http:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/194856' \/><\/div><\/div><div id=\"field_2453_13\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_13' id='input_2453_13' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='generic_form' \/><\/div><\/div><fieldset id=\"field_2453_999\" class=\"gfield gfield--type-checkbox gfield--type-choice gfield__uk-marketo-opt-in field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><legend class='gfield_label gform-field-label screen-reader-text' ><\/legend><div class='ginput_container ginput_container_checkbox'><div class='gfield_checkbox ' id='input_2453_999'><div class='gchoice gchoice_2453_999_1'>\n\t\t\t\t\t\t\t\t<input class='gfield-choice-input' name='input_999.1' type='checkbox'  value='1'  id='choice_2453_999_1'   \/>\n\t\t\t\t\t\t\t\t<label for='choice_2453_999_1' id='label_2453_999_1' class='gform-field-label gform-field-label--type-inline'>By submitting this form, you agree to receive content and event invitations from us to help you grow your business. If you do not want to receive such messages, tick here.<\/label>\n\t\t\t\t\t\t\t<\/div><\/div><\/div><\/fieldset><\/div><\/div>\n        <div class='gform-footer gform_footer top_label'> <button type=\"submit\" id=\"gform_submit_button_2453\" class=\"gform_button button\" onclick=\"gform.submission.handleButtonClick(this);\" data-submission-type=\"submit\"><span class=\"gform_submit_button__text\">Submit Now<\/span><\/button> <input type='hidden' name='gform_ajax' value='form_id=2453&amp;title=&amp;description=&amp;tabindex=0&amp;theme=gravity-theme&amp;hash=ec2463697d0d9cef7b71236ae60964c7' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submission_method' data-js='gform_submission_method_2453' value='iframe' \/>\n            <input type='hidden' class='gform_hidden' name='gform_theme' data-js='gform_theme_2453' id='gform_theme_2453' value='gravity-theme' \/>\n            <input type='hidden' class='gform_hidden' name='gform_style_settings' data-js='gform_style_settings_2453' id='gform_style_settings_2453' value='' \/>\n            <input type='hidden' class='gform_hidden' name='is_submit_2453' value='1' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submit' value='2453' \/>\n            \n            <input type='hidden' class='gform_hidden' name='gform_currency' data-currency='GBP' value='VgyL87m+0f9ucNbnE+AXBrZY\/6s5V5BsPokN9tabFw77bgnCY3MKh4cxXloWYtBy5Y9VYz\/PEDpyxE4GnjJAJyUcfdKEdV\/ubr+5042I13NXdvg=' \/>\n            <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' \/>\n            <input type='hidden' class='gform_hidden' name='state_2453' value='WyJ7XCIxNFwiOltcIjIyODY0N2ViMWU3NTcxZjA4YTY4NGJmMDcwMTk3Y2I0XCIsXCJiMzk3YmQ1MDBmMmFjNjk1ODE4MzdmNTBhYTA2MzQ0OFwiLFwiNGYyNGZkZGEwMzlkNDUxMWFhZGE1NGYwZmQwZmNiZTdcIixcIjUyMmJkMDE2M2I2ZmEwOTI3NDZhZjU5YTg0ZmM1NDk5XCIsXCIzODRlNjk1YjQxMTAzMWFiYmQ2ODEyMGYyZWFhMDYyNlwiLFwiYjkzNDcwNTE2MjkxOGRjZWViMjQzNzRjNmE0NGVmNTlcIixcIjQxMTliODZhMzVjYzJiMWViNDZiMmQ4NjRlNGUzZmNjXCJdfSIsIjQ3MjNiMzA2ZDIyZGVkODA2N2YyMjYyOThkYzI1ODVmIl0=' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_target_page_number_2453' id='gform_target_page_number_2453' value='0' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_source_page_number_2453' id='gform_source_page_number_2453' value='1' \/>\n            <input type='hidden' name='gform_field_values' value='' \/>\n            \n        <\/div>\n                        <\/form>\n                        <\/div>\n\t\t                <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_2453' id='gform_ajax_frame_2453' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'><\/iframe>\n\t\t                <script>\ngform.initializeOnLoaded( function() {gformInitSpinner( 2453, 'https:\/\/legalvision.co.uk\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery('#gform_ajax_frame_2453').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_2453');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_2453').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){form_content.find('form').css('opacity', 0);jQuery('#gform_wrapper_2453').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_2453').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_2453').removeClass('gform_validation_error');}setTimeout( function() { \/* delay the scroll by 50 milliseconds to fix a bug in chrome *\/ jQuery(document).scrollTop(jQuery('#gform_wrapper_2453').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_2453').val();gformInitSpinner( 2453, 'https:\/\/legalvision.co.uk\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery(document).trigger('gform_page_loaded', [2453, current_page]);window['gf_submitting_2453'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}jQuery('#gform_wrapper_2453').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_2453').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [2453]);window['gf_submitting_2453'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_2453').text());}else{jQuery('#gform_2453').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger(\"gform_pre_post_render\", [{ formId: \"2453\", currentPage: \"current_page\", abort: function() { this.preventDefault(); } }]);        if (event && event.defaultPrevented) {                return;        }        const gformWrapperDiv = document.getElementById( \"gform_wrapper_2453\" );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( \"span\" );            visibilitySpan.id = \"gform_visibility_test_2453\";            gformWrapperDiv.insertAdjacentElement( \"afterend\", visibilitySpan );        }        const visibilityTestDiv = document.getElementById( \"gform_visibility_test_2453\" );        let postRenderFired = false;        function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            gform.core.triggerPostRenderEvents( 2453, current_page );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate && !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) => {                mutations.forEach( ( mutation ) => {                    if ( mutation.type === 'attributes' && visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ 'style', 'class' ],            });        } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\">Structuring Your Franchise: The Multi-Company Approach<\/h2>\n\n\n\n<p><strong>Harmanjot: <\/strong>Most businesses, particularly ones that have grown and are starting to think about franchising, will generally be operating using a single company structure. For franchisors and other businesses, we generally recommend a <a href=\"https:\/\/legalvision.co.uk\/franchising\/franchises-structured\/\">dual or multi-company structure<\/a>. This allows a franchising business to separate out its assets and ensure that the moving parts of its business are protected should something go wrong.<\/p>\n\n\n\n<p>In this structure, there is typically a holding company at the top that holds valuable assets, and one or more operating companies that enter into contracts. This is particularly important for franchisors to ensure that their intellectual property is protected, as it is their biggest asset and often determines the value of the franchise network.<\/p>\n\n\n\n<div  class=\"box box--icon box--star\">\n    <!-- wp:paragraph -->\n<p>What this will look like in practice for a franchisor is as follows:<\/p>\n<!-- \/wp:paragraph --> <!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item --><\/p>\n<li>A holding company to own the trademarks and other intellectual property, like your operations manual.<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>A company to act as franchisor to enter into the franchise agreements with franchisees.<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>If the business operates from a premises, a separate leasing company to enter into the leases.<\/li>\n<!-- \/wp:list-item --> <!-- wp:list-item -->\n<li>If you intend to continue operating your flagship store or your first franchise yourself, then a separate operating company to run that business.<\/li>\n<p><!-- \/wp:list-item --><\/ol>\n<p><!-- \/wp:list --><\/p>\n<\/div>\n\n\n\n<p><br>With this structure, the holding company should not trade with or enter into contracts with any third parties, and this is so that valuable IP is protected and kept completely alone if something does go wrong.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Different Components and Purposes <\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Company <\/strong><\/td><td><strong>Purpose<\/strong><\/td><\/tr><tr><td>Franchising Company<\/td><td>The franchising company&#8217;s primary purpose will be to enter into franchise agreements with the franchisees. The franchising company generally will not have any assets, so if there is a dispute with a franchisee, for example, and the franchising company is sued, there will be no assets put at risk and the rest of the contracts continue as they are.<\/td><\/tr><tr><td>Leasing Company<\/td><td>Similarly, the leasing company&#8217;s sole purpose will be to enter into leases that will be used for the franchise business. The leasing company will not have any assets, so that if there is a dispute with the landlord, such as outstanding rent, and the leasing company is sued, there will be no assets put at risk and the leasing company can be wound up if necessary.<\/td><\/tr><tr><td>Operating Company<\/td><td>And again, for the operating company, its sole purpose will be to continue operating the flagship store. By separating this out, you ensure that if any of the other companies incur liability, the successful business that you&#8217;re already operating won&#8217;t be impacted.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>By separating out the assets of the network into various companies, you are protecting the longevity of your network and setting yourself up to succeed from the outset. It is also important to get this structure set up early on to avoid any large tax bills or liabilities in the future.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Trademark Registration and Intellectual Property Protection<\/h2>\n\n\n\n<p><strong>Paul:<\/strong> Now on to trademarks. Trademarks are important, especially in a franchise system. But what is a trademark? A trademark is a word, phrase, or logo that is used to identify and distinguish your business. For example, the Golden Arches and &#8220;I&#8217;m loving it&#8221; from McDonald&#8217;s, which we have all heard of, or brand names such as Coca-Cola, are salient examples.<\/p>\n\n\n\n<p>In a franchise, your trademarks will be your main brand and logo, but they could also include variations of this, product lines, or slogans that you use in trade.<\/p>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Importantly, <strong>the name you picked for your business on Companies House is not the same as a registered trademark and does not offer you any protection for your brand<\/strong>. This is a key thing that many businesses do not realise when they are starting out. Therefore, we recommend all businesses, whether you intend to franchise or not, register a trademark for their brands.<\/p>\n<\/div>\n\n\n\n<h3 class=\"wp-block-heading\">The Importance of Registering Your Trademark<\/h3>\n\n\n\n<p>Having a registered trademark gives you an exclusive right. It helps prevent others from using your name and logo. It allows you to take action against those who do. These parties may try to benefit from your established reputation. They may also try to benefit from your goodwill. For this reason, a registered trademark is valuable. Franchisees are paying to use it. They are paying to benefit from your established reputation and goodwill. Franchisees want to know you have registered and protected your trademarks.<\/p>\n\n\n\n<p>A trademark registration lasts 10 years. It can be renewed every 10 years. If you did not have a trademark, someone could copy your brand. You would be forced to rely on common law protections. These are far harder to enforce than trademark rights. Examples include copyright and passing off.<\/p>\n\n\n\n<p>In a franchise system, trademarks form part of your valuable intellectual property. Franchisees will often check whether you have registered them. They do this before they sign up.<\/p>\n\n\n\n<p><strong>Harmanjot:<\/strong> This might not be what some of you want to hear. The trademark process is typically quite lengthy. It can take about four months. Sometimes it takes longer if you receive an opposition. Despite the lengthy application process, you can trade whilst your application is pending. Your registration will be backdated to the date you made your initial application..<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>We do recommend only trading if there is only a low risk of your application being rejected. This is because you do not want to launch with a specific brand, spend time and money on marketing and building your brand, only to have to rebrand due to a rejection of your trademark application. Your lawyers can definitely assist with completing a risk assessment before you make your application.<\/p>\n<\/div>\n\n\n\n<p>Note that trademarks need to be applied for in each country. There is no automatic worldwide protection. There are pathways you can take to extend your local application, but you still need to make additional applications for the jurisdictions you wish to have protection in.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Beyond Trademarks: Broader IP Protection<\/h3>\n\n\n\n<p>Whilst trademarks are a clear form of IP that every franchisor should seek to protect, it is also important to ensure that other forms of IP are protected. You can do this by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>having contracts in place with robust IP clauses setting out who owns what IP and what licences are being provided in respect of that IP; <\/li>\n\n\n\n<li>considering whether other forms of registered protection apply to the products and services you will be using in the franchise, such as whether you can register a patent or a design; <\/li>\n\n\n\n<li>regularly monitoring the trademark register and the market generally to make sure other businesses are not encroaching on your intellectual property, such as your registered trademarks or your registered patents. <\/li>\n<\/ul>\n\n\n\n<p>If you find that any businesses are encroaching on your IP, you can enforce your rights against them, for example, by sending a cease-and-desist letter in respect of those marks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Consolidating and Refining Your Systems and Processes<\/h2>\n\n\n\n<p><strong>Paul:<\/strong> What are your systems and processes? These are the ways in which your business currently operates and functions and refer to the ways in which your franchise network will operate.<\/p>\n\n\n\n<p>An example of a system is a point-of-sale software that you might use in your business. An example of a process might be how you normally deal with a new customer or lead on a daily basis.<\/p>\n\n\n\n<p>When franchising, it is important to ensure your systems and processes are clear and refined so that you can have consistency in your business model, no matter who is running the business. Some franchisors consider how the franchise network will run after they franchise. However, it is important to consider this prior to the franchising process. This sets your network up for success from the beginning.<\/p>\n\n\n\n<p>Here are some systems and processes you might consider streamlining before you franchise:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your point-of-sale software; <\/li>\n\n\n\n<li>reporting, such as sales data, profitability, or accounting obligations; <\/li>\n\n\n\n<li>payment obligations; <\/li>\n\n\n\n<li>ordering of products and equipment in the business; <\/li>\n\n\n\n<li>customer relationship data and procedures; <\/li>\n\n\n\n<li>employee onboarding and documentation for that onboarding; and <\/li>\n\n\n\n<li>software systems or intranets for the franchise. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Why Replicability Matters<\/h3>\n\n\n\n<p>It is important to get these systems and processes right. They must be easily replicated in a franchise network. The ultimate goal is to have multiple franchisees. These franchisees will have taken your model. They must be equipped to replicate it in a new location. Replication is easier with clear and established systems. It is also easier with well-defined processes. These help both you and your franchisee. They provide a roadmap for running one of your franchise businesses.<\/p>\n\n\n\n<p>Linked to this is the operations manual, which we will take a look at now.<\/p>\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2024\/06\/05024405\/Screenshot-2024-06-05-at-11.43.51%E2%80%AFAM.png\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Managing a UK Franchise Network<\/div>\n            <div class=\"body-text\">\n                <p>This guide outlines key considerations and obligations you should be aware of when managing a UK franchise network.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/managing-a-uk-franchise-network.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">The Operations Manual: Your Franchise Playbook<\/h2>\n\n\n\n<p><strong>Paul: <\/strong>What is an operations manual? The operations manual relates to what we just discussed regarding your systems and processes. It&#8217;s a document that summarises your know-how for successfully operating your business in a clear and concise way. It can be a physical document, an electronic system, or a combination of these.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why is It Important?<\/h3>\n\n\n\n<p>The <a href=\"https:\/\/legalvision.co.uk\/franchising\/franchise-operations-manual\/\">operations manual<\/a> is crucial to your expansion as a franchise network. It provides all your franchisees with the information they need to successfully replicate your business.<\/p>\n\n\n\n<p>The operations manual is also a highly confidential document. It is essentially a playbook on all the key information required to understand how your business operates.<\/p>\n\n\n\n<p>The operations manual will therefore contain a lot of information. Some of this would include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>how to handle customers, including how to deal with customer complaints; <\/li>\n\n\n\n<li>who your approved suppliers are or your approved product list; <\/li>\n\n\n\n<li>information on how to onboard employees and often any employee policies that you use; and <\/li>\n\n\n\n<li>resources that the franchisee may require to operate their business as a franchisee. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Preparing Your Operations Manual<\/h3>\n\n\n\n<p>To prepare one, start by looking at all the systems and processes you have in place in your own business, some of the things we talked about earlier. Take what is usually information that is stored in your mind and put it down on paper.<\/p>\n\n\n\n<p>Most of the operations manual is not really a legal document. Legal information is what the franchise agreement is for. However, some policies and information in the operations manual may have legal implications. As such, whilst you will typically work with a franchise consultant to get a proper operations manual drafted, you should have a lawyer review the sections that relate to your legal obligations. Some of those would be employment contracts, privacy policies, disputes and notices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">When to Provide the Operations Manual<\/h3>\n\n\n\n<p>A question we are often asked is when to provide a franchisee with the operations manual, given that it contains highly confidential information. We suggest following this approach for issuing it to franchisees, and it is better to issue it after they have signed the franchise agreement, if that is possible.<\/p>\n\n\n\n<p>If the franchisee wants the operations manual before they become a franchisee, we would suggest either:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>only doing this after they&#8217;ve signed a non-disclosure agreement beforehand; or<\/li>\n\n\n\n<li>allowing them to only inspect the manual, not to take a copy of it. <\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--idea\">\n    <p>The preferred method is to issue it to them after they sign their franchise agreement, as the agreement contains all the relevant restraints and confidentiality obligations they must abide by. It must be handed back when they are no longer franchisees.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Essential Contracts for Your Franchise Network<\/h2>\n\n\n\n<p><strong>Harmanjot:<\/strong> What are your key contracts? In addition to the corporate structure, your intellectual property, your franchise agreement, and your operations manual, a great franchise system relies on all of its contractual relationships and how those filter down to its franchisees.<\/p>\n\n\n\n<p>We always suggest new franchisors undertake a review of all of their own contracts as part of the process of consolidating and writing their operations manual. These contracts form part of your systems and processes.<\/p>\n\n\n\n<p>Some things to think about:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Do you have adequate employment agreements and employment policies that your franchisees could use?<\/li>\n\n\n\n<li>Will your contracts with preferred suppliers allow you to grow into a large franchise network?<\/li>\n\n\n\n<li>Do you have favourable terms with these preferred suppliers, or do these contracts need to be renegotiated?<\/li>\n\n\n\n<li>Do you have data protection policies that comply with the GDPR?<\/li>\n\n\n\n<li>Do your existing leases allow you to underlet to a prospective franchisee?<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>These contracts underpin the operation of your franchise network and, therefore, the operation of each individual franchisee, where they are being relied on. Not only do they provide a strong roadmap for growth through consistency, but they also show franchisees that you are invested in their success.<\/p>\n<\/div>\n\n\n\n<p>Further, a review of these documents also highlights any IP gaps, or situations where the IP you rely on is not properly assigned to you or is not capable of being used by you under existing contractual arrangements. This materially affects the value of your franchise model, as, if you do not own your IP, you cannot license it to your franchisees.<\/p>\n\n\n\n<p>Having a lawyer review, advise, and redraft these documents as required is essential to building a successful franchise, and it is certainly something to consider before you take on franchisees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">GDPR and Data Protection Considerations<\/h2>\n\n\n\n<p><strong>Harmanjot:<\/strong> I also want to quickly have a chat about GDPR considerations. It is a niche area, but it is important to all businesses.<\/p>\n\n\n\n<p>Franchisors must ensure they comply with data protection laws when handling personal data. This includes when they collect personal data, such as the names and addresses of franchisees, as well as when they have access to end customer personal data, such as through customer databases from their franchise network.<\/p>\n\n\n\n<p>As a franchisor, it is not sufficient to leave GDPR compliance up to your franchisees. As with other areas of your business, you should have processes for your franchisees to follow for collecting, storing and using personal data.<\/p>\n\n\n\n<p>If you expect your franchisees to share personal data with you, for example, for marketing purposes, you need a lawful basis for sharing that information.<\/p>\n\n\n\n<p>You must also consider which situations make you a controller. You must also identify when franchisees consider you their processor. This will determine your obligations. These obligations relate to handling the personal data you receive.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>You also need to think about who is responsible for handling any data subject requests you receive\u2014that is, requests from individuals in respect of their personal data held by the business. If the franchise operates from a centralised website that you manage, a customer may reach out to you to exercise their rights under the GDPR, but you may need to involve individual franchisees to respond to those requests.<\/p>\n<\/div>\n\n\n\n<p>So, it is really important to set out in advance what the process is so that you can ensure that your franchise network as a whole is compliant with the GDPR and who is responsible for what. Regulatory bodies impose large fines on businesses that fail to comply with their data privacy obligations, so this is an important area for franchisors to consider in their networks before they get set up.<\/p>\n\n\n\n<p>Your data protection procedures will form part of your systems and processes and should be set out in your operations manual.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Franchise Agreement: Key Legal Terms<\/h2>\n\n\n\n<p><strong>Paul:<\/strong> The one that we all think about. What is a franchise agreement? A franchise agreement is a lengthy document that governs the <a href=\"https:\/\/legalvision.co.uk\/franchising\/signing-franchise-agreement-what-should-i-know\/\">key legal terms between the franchisor and the franchisee<\/a>. It sets out the rights and obligations of each party. It also links with the operations manual to define the relationship between you and your franchisees. The two documents are connected, and franchise agreements are drafted so that a breach of the manual is a breach of the franchise agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What Should You Think About When Preparing Your Franchise Agreement?<\/h3>\n\n\n\n<p>As we have touched on, the licensing of your intellectual property. The franchise agreement provides franchisees the right to use your intellectual property. It also allows them to replicate your business model. Therefore, there needs to be a licence for that IP.<\/p>\n\n\n\n<p>This IP is generally licensed for a fee. You also need to consider the fees the franchisee will pay you.<\/p>\n\n\n\n<p>You may retain certain obligations as the franchisor. For example, you might handle marketing for the franchise network. You should consider what financial contributions you&#8217;ll require from the franchisee. These contributions would go towards those retained obligations.<\/p>\n\n\n\n<p>Your operations manual contains significant confidential information. In the wrong hands, this could damage your growth plans. You will want to ensure all your intellectual property is protected. This includes the operations manual. Confidentiality provisions should cover these assets.<\/p>\n\n\n\n<p>Franchisees are typically exposed to sensitive business information. Franchisors commonly include during-term restrictions on franchisees. Post-term restrictions are also common. These may cover other businesses the franchisee operates. They may also cover clients they have worked with.<\/p>\n\n\n\n<p>Many franchisees rely on premises to service their customers. You need to consider how the franchisee sources those premises. Alternatively, you might handle that for them. You should also think about fit-out requirements. Design requirements will need consideration too. The franchisee will need to comply with these standards.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Q&amp;A Session<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1761105263133\"><strong class=\"schema-faq-question\">What percentage would you take from each franchise? Is there a standard rate?<\/strong> <p class=\"schema-faq-answer\"><strong>Paul:<\/strong> If we are talking about the percentage of gross revenue that the franchisee makes, there is not so much a standard rate, but a rate that you typically see is between 5% to 8% of monthly gross revenue. That is usually where we would start.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105293110\"><strong class=\"schema-faq-question\">Do you deal with the legality for the contract between each franchisee?<\/strong> <p class=\"schema-faq-answer\"><strong>Harmanjot:<\/strong> Yes, we certainly assist with grants of franchise agreements to new franchisees, and this involves tailoring your master agreement to suit the new relationship. We issue that to the franchisee on the franchisor&#8217;s behalf. However, we cannot advise the franchisee at the same time. LegalVision membership is a really good tool for this because it is an all-inclusive membership, which means that you will not pay us each time we need to issue a new grant to a new franchisee.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105456719\"><strong class=\"schema-faq-question\">Do you have any recommendations for who should hold the lease for shop franchises?<\/strong> <p class=\"schema-faq-answer\"><strong>Harmanjot:<\/strong> This all depends on how important the sites are to you as a franchisor and your appetite for risk. If site locations are very important and you have greater buying power than the franchisees to get a good deal, we suggest that the franchisor takes the site. For example, if you are a retail food outlet that operates in shopping centres, this gives you far greater control over the relationship with the landlord. It also gives you greater control over things like the fit-out. If the site is less important, you could let the franchisee enter into the lease and take on that legal responsibility themselves. Really, it just depends on how much control you want to have over the site.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105517273\"><strong class=\"schema-faq-question\">How do you work out what length the franchise agreements should be?<\/strong> <p class=\"schema-faq-answer\"><strong>Paul:<\/strong> There is a bit of a strategy to this one, but it is not always clear-cut. The general rule is that the term of the franchise agreement should be long enough for the franchisee to make back its initial investment. The industry standard is that the franchisee&#8217;s initial investment costs should be amortised. Generally, it is market standard to see terms of five years. Five years is typically taken as the starting point for most franchises, which is why most franchises that you would see would be a five-year grant. But if the initial start-up costs aren&#8217;t so expensive, you can quite often see shorter terms, and the franchisee will be recouping their costs in that shorter term.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105603007\"><strong class=\"schema-faq-question\">If the franchisee is sued, are you liable as the franchisor?<\/strong> <p class=\"schema-faq-answer\"><strong>Paul:<\/strong> That is a complicated question. It depends a lot on how the franchise is set up, but generally speaking, franchisees of franchisors are not generally their employees, they are not generally their agents, they are a separate legal entity. So, provided that the relationship has not become blurred in some way, generally speaking, the franchisee is liable for things it enters into and the operation of its own business, equally for the franchisor.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105684912\"><strong class=\"schema-faq-question\">Can I require my franchisees to purchase supplies from my preferred suppliers?<\/strong> <p class=\"schema-faq-answer\"><strong>Harmanjot:<\/strong> Yes, you certainly can, and this goes back to what Paul was saying about setting out your systems and processes in your operations manual. Your systems and processes include your preferred suppliers. For example, if you are a caf\u00e9, you may want your franchisees to purchase their coffee beans from your preferred supplier so that the coffee across your locations tastes relatively the same.<br\/><br\/>Requiring your franchisees to purchase from your preferred suppliers may also enable you to receive a greater discount for the network as a whole due to the increased volume of goods being ordered. You do, however, need to ensure that your preferred suppliers are capable of keeping up with the increased demand, and this is where the review of your contracts comes in, because there is no point requiring your franchisees to order supplies from your preferred suppliers if they are not going to be able to keep up with that.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105757216\"><strong class=\"schema-faq-question\">Is there a minimum regional area that you would recommend?<\/strong> <p class=\"schema-faq-answer\"><strong>Paul:<\/strong> If we are talking about territory mapping for franchisees, it is more of an area that a franchise consultant can help you with. There are consultants out there that will assist you with specific territory mapping, so you can have a think about your growth plans, you can have a think about how large territories might need to be. The sort of thing to think about is quite often franchisees will expect an exclusive territory, and if you grant too large a regional area to a local franchisee first, it can interfere with your growth plans in the future because you&#8217;ll have granted that territory and you can&#8217;t necessarily carve it up into smaller pieces if demographics change.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105793606\"><strong class=\"schema-faq-question\">In addition to taking a commission or licensing fee from franchisees, what additional fees can I require them to pay?<\/strong> <p class=\"schema-faq-answer\"><strong>Harmanjot:<\/strong> You can require them to contribute to your national marketing fund and to pay rental fees when you are taking on a lease on their behalf, although these are usually set out in a separate lease, not your franchise agreement. You can also ask for local-level advertisement contributions, software licensing fees, or, if you are providing any services or products to the franchisee, you can actually ask for fees in respect of those as well.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105852332\"><strong class=\"schema-faq-question\">My trademark application was rejected. Can I still franchise my business?<\/strong> <p class=\"schema-faq-answer\"><strong>Harmanjot:<\/strong> If you have received a refusal or an opposition to your trademark, it likely means that if you were to operate your business under that branding, you may be on the receiving end of some strongly worded legal letters, particularly where there is another business that is already operating under substantially similar branding. They are now also hyper-aware of your business and keeping an eye on your growth, as they have become aware of you because of your attempted registration.<br\/>As we have discussed at length in this webinar, a franchise&#8217;s IP is its highest-valued asset. It is what your franchisees are paying you for, and it is what determines the value of your franchise network. If you are unable to secure the rights to your branding, your franchisees are likely to see this as a risky investment because they could be required to shut down or rebrand at any time.<br\/><br\/>If you have been unable to register trademarks in respect of your branding, it may be best to rebrand and then begin your franchising journey to give your business the best possible chances of succeeding.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1761105930143\"><strong class=\"schema-faq-question\">I am not sure if I need a franchise agreement or just a licensing agreement.<\/strong> <p class=\"schema-faq-answer\"><strong>Paul:<\/strong>\u00a0This can be a tricky one to work out, but a good rule of thumb is that standalone licensing agreements typically suit situations where another business is using a product or service for which you own the IP. You might have developed a very specific product, they want to use that product in part of their own line, you can give them rights just to the IP in that product. That would be what a licence agreement would cover. It is not replicating your business. So if someone is going to be operating a whole business that&#8217;s like yours, franchising is usually the method or the best approach.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/194856\" \/>            <input value=\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How to Franchise Your Business in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This webinar provides comprehensive guidance for business owners considering franchising their business in the UK. Presented by LegalVision&#8217;s franchising and corporate law experts, Harmanjot (Associate, Corporate and Commercial Team) and Paul (Senior Associate, Franchising Team), this session covers the essential legal and commercial considerations for establishing a successful franchise network. From assessing whether your business<a href=\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\">Continue reading <span class=\"sr-only\">&#8220;How to Franchise Your Business in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":11449,"featured_media":183553,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[33],"tags":[20,56,1755,2513],"class_list":["post-194856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchising","tag-small-business","tag-franchisee","tag-franchise","tag-webinar"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Franchise Your Business in the UK | LegalVision UK<\/title>\n<meta name=\"description\" content=\"Learn how to successfully franchise your business in the UK. Expert guidance on structure, IP protection, contracts, and franchise agreements.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Franchise Your Business in the UK | LegalVision UK\" \/>\n<meta property=\"og:description\" content=\"Learn how to successfully franchise your business in the UK. Expert guidance on structure, IP protection, contracts, and franchise agreements.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-22T04:15:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-10-22T05:09:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1800\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Loccisano\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul Loccisano\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"18 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\"},\"author\":{\"name\":\"Paul Loccisano\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/403721df0f0f01c9300a3b552fa1c5da\"},\"headline\":\"How to Franchise Your Business in the UK\",\"datePublished\":\"2025-10-22T04:15:02+00:00\",\"dateModified\":\"2025-10-22T05:09:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\"},\"wordCount\":4047,\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg\",\"keywords\":[\"small business\",\"franchisee\",\"franchise\",\"webinar\"],\"articleSection\":[\"Franchising Articles\"],\"inLanguage\":\"en-GB\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\",\"url\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\",\"name\":\"How to Franchise Your Business in the UK | LegalVision UK\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg\",\"datePublished\":\"2025-10-22T04:15:02+00:00\",\"dateModified\":\"2025-10-22T05:09:44+00:00\",\"author\":{\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/403721df0f0f01c9300a3b552fa1c5da\"},\"description\":\"Learn how to successfully franchise your business in the UK. Expert guidance on structure, IP protection, contracts, and franchise agreements.\",\"breadcrumb\":{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105263133\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105293110\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105456719\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105517273\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105603007\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105684912\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105757216\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105793606\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105852332\"},{\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105930143\"}],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage\",\"url\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg\",\"contentUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg\",\"width\":1800,\"height\":1200,\"caption\":\"How to Franchise Your Business in the UK\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/legalvision.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Franchising Articles\",\"item\":\"https:\/\/legalvision.co.uk\/category\/franchising\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"How to Franchise Your Business in the UK\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/legalvision.co.uk\/#website\",\"url\":\"https:\/\/legalvision.co.uk\/\",\"name\":\"LegalVision UK\",\"description\":\"LegalVision is a commercial law firm in the UK with a commitment to innovation\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/legalvision.co.uk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/403721df0f0f01c9300a3b552fa1c5da\",\"name\":\"Paul Loccisano\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2022\/11\/Paul-Loccisano-scaled-e1669839494930-96x96.jpg\",\"contentUrl\":\"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2022\/11\/Paul-Loccisano-scaled-e1669839494930-96x96.jpg\",\"caption\":\"Paul Loccisano\"},\"description\":\"Paul is a Senior Associate with LegalVision. He graduated from UNSW with a Juris Doctor in Laws and also holds a Bachelor of Communication from the University of Newcastle. He has previously worked in strata both as a lawyer and licensee in charge. Paul has keen interests in consumer law, startups and business growth.\",\"url\":\"https:\/\/legalvision.co.uk\/author\/paul-loccisano\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105263133\",\"name\":\"What percentage would you take from each franchise? Is there a standard rate?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Paul:<\/strong> If we are talking about the percentage of gross revenue that the franchisee makes, there is not so much a standard rate, but a rate that you typically see is between 5% to 8% of monthly gross revenue. That is usually where we would start.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105293110\",\"name\":\"Do you deal with the legality for the contract between each franchisee?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Harmanjot:<\/strong> Yes, we certainly assist with grants of franchise agreements to new franchisees, and this involves tailoring your master agreement to suit the new relationship. We issue that to the franchisee on the franchisor's behalf. However, we cannot advise the franchisee at the same time. LegalVision membership is a really good tool for this because it is an all-inclusive membership, which means that you will not pay us each time we need to issue a new grant to a new franchisee.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105456719\",\"name\":\"Do you have any recommendations for who should hold the lease for shop franchises?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Harmanjot:<\/strong> This all depends on how important the sites are to you as a franchisor and your appetite for risk. If site locations are very important and you have greater buying power than the franchisees to get a good deal, we suggest that the franchisor takes the site. For example, if you are a retail food outlet that operates in shopping centres, this gives you far greater control over the relationship with the landlord. It also gives you greater control over things like the fit-out. If the site is less important, you could let the franchisee enter into the lease and take on that legal responsibility themselves. Really, it just depends on how much control you want to have over the site.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105517273\",\"name\":\"How do you work out what length the franchise agreements should be?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Paul:<\/strong> There is a bit of a strategy to this one, but it is not always clear-cut. The general rule is that the term of the franchise agreement should be long enough for the franchisee to make back its initial investment. The industry standard is that the franchisee's initial investment costs should be amortised. Generally, it is market standard to see terms of five years. Five years is typically taken as the starting point for most franchises, which is why most franchises that you would see would be a five-year grant. But if the initial start-up costs aren't so expensive, you can quite often see shorter terms, and the franchisee will be recouping their costs in that shorter term.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105603007\",\"name\":\"If the franchisee is sued, are you liable as the franchisor?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Paul:<\/strong> That is a complicated question. It depends a lot on how the franchise is set up, but generally speaking, franchisees of franchisors are not generally their employees, they are not generally their agents, they are a separate legal entity. So, provided that the relationship has not become blurred in some way, generally speaking, the franchisee is liable for things it enters into and the operation of its own business, equally for the franchisor.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105684912\",\"name\":\"Can I require my franchisees to purchase supplies from my preferred suppliers?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Harmanjot:<\/strong> Yes, you certainly can, and this goes back to what Paul was saying about setting out your systems and processes in your operations manual. Your systems and processes include your preferred suppliers. For example, if you are a caf\u00e9, you may want your franchisees to purchase their coffee beans from your preferred supplier so that the coffee across your locations tastes relatively the same.<br\/><br\/>Requiring your franchisees to purchase from your preferred suppliers may also enable you to receive a greater discount for the network as a whole due to the increased volume of goods being ordered. You do, however, need to ensure that your preferred suppliers are capable of keeping up with the increased demand, and this is where the review of your contracts comes in, because there is no point requiring your franchisees to order supplies from your preferred suppliers if they are not going to be able to keep up with that.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105757216\",\"name\":\"Is there a minimum regional area that you would recommend?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Paul:<\/strong> If we are talking about territory mapping for franchisees, it is more of an area that a franchise consultant can help you with. There are consultants out there that will assist you with specific territory mapping, so you can have a think about your growth plans, you can have a think about how large territories might need to be. The sort of thing to think about is quite often franchisees will expect an exclusive territory, and if you grant too large a regional area to a local franchisee first, it can interfere with your growth plans in the future because you'll have granted that territory and you can't necessarily carve it up into smaller pieces if demographics change.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105793606\",\"name\":\"In addition to taking a commission or licensing fee from franchisees, what additional fees can I require them to pay?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Harmanjot:<\/strong> You can require them to contribute to your national marketing fund and to pay rental fees when you are taking on a lease on their behalf, although these are usually set out in a separate lease, not your franchise agreement. You can also ask for local-level advertisement contributions, software licensing fees, or, if you are providing any services or products to the franchisee, you can actually ask for fees in respect of those as well.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105852332\",\"name\":\"My trademark application was rejected. Can I still franchise my business?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Harmanjot:<\/strong> If you have received a refusal or an opposition to your trademark, it likely means that if you were to operate your business under that branding, you may be on the receiving end of some strongly worded legal letters, particularly where there is another business that is already operating under substantially similar branding. They are now also hyper-aware of your business and keeping an eye on your growth, as they have become aware of you because of your attempted registration.<br\/>As we have discussed at length in this webinar, a franchise's IP is its highest-valued asset. It is what your franchisees are paying you for, and it is what determines the value of your franchise network. If you are unable to secure the rights to your branding, your franchisees are likely to see this as a risky investment because they could be required to shut down or rebrand at any time.<br\/><br\/>If you have been unable to register trademarks in respect of your branding, it may be best to rebrand and then begin your franchising journey to give your business the best possible chances of succeeding.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105930143\",\"name\":\"I am not sure if I need a franchise agreement or just a licensing agreement.\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<strong>Paul:<\/strong>\u00a0This can be a tricky one to work out, but a good rule of thumb is that standalone licensing agreements typically suit situations where another business is using a product or service for which you own the IP. You might have developed a very specific product, they want to use that product in part of their own line, you can give them rights just to the IP in that product. That would be what a licence agreement would cover. It is not replicating your business. So if someone is going to be operating a whole business that's like yours, franchising is usually the method or the best approach.\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How to Franchise Your Business in the UK | LegalVision UK","description":"Learn how to successfully franchise your business in the UK. Expert guidance on structure, IP protection, contracts, and franchise agreements.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/","og_locale":"en_GB","og_type":"article","og_title":"How to Franchise Your Business in the UK | LegalVision UK","og_description":"Learn how to successfully franchise your business in the UK. Expert guidance on structure, IP protection, contracts, and franchise agreements.","og_url":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/","og_site_name":"LegalVision UK","article_publisher":"https:\/\/www.facebook.com\/LegalVision","article_published_time":"2025-10-22T04:15:02+00:00","article_modified_time":"2025-10-22T05:09:44+00:00","og_image":[{"width":1800,"height":1200,"url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg","type":"image\/jpeg"}],"author":"Paul Loccisano","twitter_card":"summary_large_image","twitter_creator":"@LegalVision_law","twitter_site":"@LegalVision_law","twitter_misc":{"Written by":"Paul Loccisano","Est. reading time":"18 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#article","isPartOf":{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/"},"author":{"name":"Paul Loccisano","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/403721df0f0f01c9300a3b552fa1c5da"},"headline":"How to Franchise Your Business in the UK","datePublished":"2025-10-22T04:15:02+00:00","dateModified":"2025-10-22T05:09:44+00:00","mainEntityOfPage":{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/"},"wordCount":4047,"image":{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg","keywords":["small business","franchisee","franchise","webinar"],"articleSection":["Franchising Articles"],"inLanguage":"en-GB"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/","url":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/","name":"How to Franchise Your Business in the UK | LegalVision UK","isPartOf":{"@id":"https:\/\/legalvision.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage"},"image":{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg","datePublished":"2025-10-22T04:15:02+00:00","dateModified":"2025-10-22T05:09:44+00:00","author":{"@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/403721df0f0f01c9300a3b552fa1c5da"},"description":"Learn how to successfully franchise your business in the UK. Expert guidance on structure, IP protection, contracts, and franchise agreements.","breadcrumb":{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105263133"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105293110"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105456719"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105517273"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105603007"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105684912"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105757216"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105793606"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105852332"},{"@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105930143"}],"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2023\/10\/26040803\/thought-catalog-505eectW54k-unsplash.jpg","width":1800,"height":1200,"caption":"How to Franchise Your Business in the UK"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Franchising Articles","item":"https:\/\/legalvision.co.uk\/category\/franchising\/"},{"@type":"ListItem","position":3,"name":"How to Franchise Your Business in the UK"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to innovation","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/403721df0f0f01c9300a3b552fa1c5da","name":"Paul Loccisano","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2022\/11\/Paul-Loccisano-scaled-e1669839494930-96x96.jpg","contentUrl":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2022\/11\/Paul-Loccisano-scaled-e1669839494930-96x96.jpg","caption":"Paul Loccisano"},"description":"Paul is a Senior Associate with LegalVision. He graduated from UNSW with a Juris Doctor in Laws and also holds a Bachelor of Communication from the University of Newcastle. He has previously worked in strata both as a lawyer and licensee in charge. Paul has keen interests in consumer law, startups and business growth.","url":"https:\/\/legalvision.co.uk\/author\/paul-loccisano\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105263133","name":"What percentage would you take from each franchise? Is there a standard rate?","acceptedAnswer":{"@type":"Answer","text":"<strong>Paul:<\/strong> If we are talking about the percentage of gross revenue that the franchisee makes, there is not so much a standard rate, but a rate that you typically see is between 5% to 8% of monthly gross revenue. That is usually where we would start.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105293110","name":"Do you deal with the legality for the contract between each franchisee?","acceptedAnswer":{"@type":"Answer","text":"<strong>Harmanjot:<\/strong> Yes, we certainly assist with grants of franchise agreements to new franchisees, and this involves tailoring your master agreement to suit the new relationship. We issue that to the franchisee on the franchisor's behalf. However, we cannot advise the franchisee at the same time. LegalVision membership is a really good tool for this because it is an all-inclusive membership, which means that you will not pay us each time we need to issue a new grant to a new franchisee.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105456719","name":"Do you have any recommendations for who should hold the lease for shop franchises?","acceptedAnswer":{"@type":"Answer","text":"<strong>Harmanjot:<\/strong> This all depends on how important the sites are to you as a franchisor and your appetite for risk. If site locations are very important and you have greater buying power than the franchisees to get a good deal, we suggest that the franchisor takes the site. For example, if you are a retail food outlet that operates in shopping centres, this gives you far greater control over the relationship with the landlord. It also gives you greater control over things like the fit-out. If the site is less important, you could let the franchisee enter into the lease and take on that legal responsibility themselves. Really, it just depends on how much control you want to have over the site.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105517273","name":"How do you work out what length the franchise agreements should be?","acceptedAnswer":{"@type":"Answer","text":"<strong>Paul:<\/strong> There is a bit of a strategy to this one, but it is not always clear-cut. The general rule is that the term of the franchise agreement should be long enough for the franchisee to make back its initial investment. The industry standard is that the franchisee's initial investment costs should be amortised. Generally, it is market standard to see terms of five years. Five years is typically taken as the starting point for most franchises, which is why most franchises that you would see would be a five-year grant. But if the initial start-up costs aren't so expensive, you can quite often see shorter terms, and the franchisee will be recouping their costs in that shorter term.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105603007","name":"If the franchisee is sued, are you liable as the franchisor?","acceptedAnswer":{"@type":"Answer","text":"<strong>Paul:<\/strong> That is a complicated question. It depends a lot on how the franchise is set up, but generally speaking, franchisees of franchisors are not generally their employees, they are not generally their agents, they are a separate legal entity. So, provided that the relationship has not become blurred in some way, generally speaking, the franchisee is liable for things it enters into and the operation of its own business, equally for the franchisor.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105684912","name":"Can I require my franchisees to purchase supplies from my preferred suppliers?","acceptedAnswer":{"@type":"Answer","text":"<strong>Harmanjot:<\/strong> Yes, you certainly can, and this goes back to what Paul was saying about setting out your systems and processes in your operations manual. Your systems and processes include your preferred suppliers. For example, if you are a caf\u00e9, you may want your franchisees to purchase their coffee beans from your preferred supplier so that the coffee across your locations tastes relatively the same.<br\/><br\/>Requiring your franchisees to purchase from your preferred suppliers may also enable you to receive a greater discount for the network as a whole due to the increased volume of goods being ordered. You do, however, need to ensure that your preferred suppliers are capable of keeping up with the increased demand, and this is where the review of your contracts comes in, because there is no point requiring your franchisees to order supplies from your preferred suppliers if they are not going to be able to keep up with that.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105757216","name":"Is there a minimum regional area that you would recommend?","acceptedAnswer":{"@type":"Answer","text":"<strong>Paul:<\/strong> If we are talking about territory mapping for franchisees, it is more of an area that a franchise consultant can help you with. There are consultants out there that will assist you with specific territory mapping, so you can have a think about your growth plans, you can have a think about how large territories might need to be. The sort of thing to think about is quite often franchisees will expect an exclusive territory, and if you grant too large a regional area to a local franchisee first, it can interfere with your growth plans in the future because you'll have granted that territory and you can't necessarily carve it up into smaller pieces if demographics change.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105793606","name":"In addition to taking a commission or licensing fee from franchisees, what additional fees can I require them to pay?","acceptedAnswer":{"@type":"Answer","text":"<strong>Harmanjot:<\/strong> You can require them to contribute to your national marketing fund and to pay rental fees when you are taking on a lease on their behalf, although these are usually set out in a separate lease, not your franchise agreement. You can also ask for local-level advertisement contributions, software licensing fees, or, if you are providing any services or products to the franchisee, you can actually ask for fees in respect of those as well.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105852332","name":"My trademark application was rejected. Can I still franchise my business?","acceptedAnswer":{"@type":"Answer","text":"<strong>Harmanjot:<\/strong> If you have received a refusal or an opposition to your trademark, it likely means that if you were to operate your business under that branding, you may be on the receiving end of some strongly worded legal letters, particularly where there is another business that is already operating under substantially similar branding. They are now also hyper-aware of your business and keeping an eye on your growth, as they have become aware of you because of your attempted registration.<br\/>As we have discussed at length in this webinar, a franchise's IP is its highest-valued asset. It is what your franchisees are paying you for, and it is what determines the value of your franchise network. If you are unable to secure the rights to your branding, your franchisees are likely to see this as a risky investment because they could be required to shut down or rebrand at any time.<br\/><br\/>If you have been unable to register trademarks in respect of your branding, it may be best to rebrand and then begin your franchising journey to give your business the best possible chances of succeeding.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/franchising\/how-to-franchise-your-business-in-the-uk\/#faq-question-1761105930143","name":"I am not sure if I need a franchise agreement or just a licensing agreement.","acceptedAnswer":{"@type":"Answer","text":"<strong>Paul:<\/strong>\u00a0This can be a tricky one to work out, but a good rule of thumb is that standalone licensing agreements typically suit situations where another business is using a product or service for which you own the IP. You might have developed a very specific product, they want to use that product in part of their own line, you can give them rights just to the IP in that product. That would be what a licence agreement would cover. It is not replicating your business. So if someone is going to be operating a whole business that's like yours, franchising is usually the method or the best approach.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/194856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/11449"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=194856"}],"version-history":[{"count":5,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/194856\/revisions"}],"predecessor-version":[{"id":194868,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/194856\/revisions\/194868"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/183553"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=194856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=194856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=194856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}