bto solicitors - Corporate & Commercial Business Lawyers Glasgow Edinburgh Scotland

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Franchising

A Franchise is a licence to use a business idea belonging to another. The person selling the idea is known as the Franchisor and the person purchasing the right to use the business idea, and/or trade under the name of the organisation, is known as the Franchisee.

Considerations for a franchisor

  • Business plan
  • Costs incurred in setting up and maintaining a franchise network
  • Level of profit expected
  • Level of fees and the initial investment by franchisees
  • Is there adequate working capital in place until the franchise fees materialise?
  • Could the network expand and attract further franchisees?
  • Marketing plan

Considerations for a franchisee

  • The Company's history
  • How long the organisation has been franchising and where Current number of franchisees
  • Sources of company earnings  
  • Details of the training provided 
  • Realistic amount of capital that would be required  
  • Types and amount of advertising
  • Any need to buy products from the franchisor?
  • Are there target obligations that need to be met?
  • Profit and loss figures Total cost in setting up a franchise

Contact: Alastair Dunn, Partner akd@bto.co.uk / Jeremy Glen, Partner jsg@bto.co.uk  /  T. 0141 221 8012 

 

 

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Contact BTO

Glasgow

  • 48 St. Vincent Street
  • Glasgow
  • G2 5HS
  • T:+44 (0)141 221 8012
  • F:+44 (0)141 221 7803

Edinburgh

  • One Edinburgh Quay
  • Edinburgh
  • EH3 9QG
  • T:+44 (0)131 222 2939
  • F:+44 (0)131 222 2949

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