Many small and medium sized enterprises sometimes do not realise what intellectual property rights they hold and the relatively quick and cost effective ways that exist to protect and enforce these rights in situations where they are being exploited or infringed by others.
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“Franchising is one long conversation, chequered by disputes”. If Robert Louis Stevenson had pursued a career in the franchising industry, rather than becoming a poet and novelist, he may have penned these words. Stevenson was, in fact, referring to “marriage” but there are numerous similarities between the two relationships.
Making a profit might not be the only reason for a Franchisee selling their business. The Franchisee might be looking to retire, relocate, pursue other business interests or they might simply have realised that the business they chose is no longer for them. The best exit for such a franchisee is to sell their business as a “Franchise Resale”, but who do they sell it to?
Consumer sales are regulated to a significant extent within the UK and also within Europe. A recent case in Germany looked at the 14-day right to withdraw from distance or off-premises contracts. In particular, the excepting where if a transaction involved "a contract for the supply of sealed goods which are not suitable for return due to health protection or hygiene reasons, if they become unsealed after delivery" then the right to cancel was lost.
Figures from the recently released NatWest British Franchise Association Survey 2018 show that franchising is now a major factor in business growth in the UK and these numbers are set to keep on growing.