The franchising legal specialists
Franchising is increasingly becoming one of the more common methods of international expansion, particularly in the retail and food sectors.
What is International Franchising?
Put simply, 'International Franchising' is the granting of a licence by one business based in the UK to another based overseas, which entitles the latter to run their own business following the processes, procedures and training set out by the franchisor. In return for management services fees, the franchisor (the one granting the licence) allows the franchisee to trade under the name of the franchisor and gives them a support package containing all that they need to operate that business along with ongoing support.
The Benefits of International Franchising
The many benefits of International Franchising as a method for business expansion include:
If a business were to expand overseas itself it would have to bear all the development costs including property, staffing and other overheads in the overseas territory. Franchising allows them to partner with a franchisee and use the franchisee’s capital to set up and roll out the operation in a new territory. A large network of international franchisees also allows the franchisor to make significant savings on group buying discounts!
Quick international brand growth
As expansion can be achieved easily through franchising it allows the franchisor to grow an international brand quickly.
A franchise partner based in a country knows all about the local market, the language and the business practices of that country. In particular, the right partner will know if any adaption is required to make the business successful in that country. For example, any Scottish franchisee for an American fashion brand will know that warm jackets should be stocked all year round!
In an uncertain economic climate, it is beneficial to the franchisor to have operations in multiple markets to safeguard itself from adverse conditions in any one particular market.
Established Franchising Support
Our specialists have many years of experience advising clients on international franchising. From global giants like Nokia to local SME’s, they have advised on the international structure, entry strategy and franchise documentation for expansion into a wide variety of territories. Last year alone we advised clients on expansion into mainland Europe, the Middle East, Asia and North America.
We also help businesses in the UK acquire rights to operate ‘master franchise’ businesses in the UK. This often involves detailed negotiation of a Master Franchise Agreement (or similar international franchise agreement) to make sure our clients have a firm foundation on which to grow their franchise business in the UK.
We offer a free initial consultation to anyone seeking franchise legal advice. We are always competitively priced, pleased to discuss costs with you and, where appropriate, will endeavour to agree a fixed fee for our involvement. David Kaye is also a British Franchise Association (BFA) Accredited Lawyer.
We're Always Here to Help
Our team is top-ranked for Franchising in Chambers UK Guide to the Legal Profession 2018, with lead Partner David Kaye ranked as a Band 1 Leader in the Field.
Call us for free on 0330 159 5555 or complete our online form below for legal advice or to arrange a call back.
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