Packaging a franchise
A franchise is sold as a ready-made business, but legally it is a set of rights: a trademark, know-how, standards. We assemble that set for sale – or review someone else’s before the buyer pays the upfront franchise fee.
What is included
- A commercial concession (franchise) agreement or a licence agreement with royalties, territory and restrictions that still works when a partner leaves
- The grant of the right of use registered with Rospatent
- A trade secret regime for the know-how, without which a franchise is no more than the rental of a logo
- Network standards and a partner manual under which performance can be demanded rather than requested
- A review of someone else’s franchise, listing what the buyer pays for and what they will get if the network closes
Case study
A pet grooming salon franchise assembled in full
The request
The pet grooming salon chain businka was selling a franchise but could in effect hand a partner nothing but the name: there was no agreement, the terms on which an outlet operated existed as oral arrangements, and the chain’s know-how was not described anywhere as an asset.
What we did
We assembled the franchise in full, in a single commercial concession agreement: the right to use the trademark, the transfer of the chain’s know-how – how a salon is run and what exactly a partner receives along with the brand – the territory, the upfront franchise fee and royalties, the requirements for running an outlet and the grounds for termination. Separately we set out what a partner must comply with and for which breaches the chain may end the relationship.
The result
The chain moved from selling a name to selling a set of rights: a trademark, know-how and standards. The terms on which a partner operates became a matter of contract rather than of oral arrangement, and repeat from outlet to outlet without being reassembled.
Solve your matter
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