Franchise Documentation

Franchising involves a certain amount of documentation, especially in countries that have franchising laws, unlike in the UK, where you are free from any such obligations to starting up a franchise business. Countries requiring documentation to be in place for commencing a franchise business necessitates a sizable number of detailed plans, proposals and business operations system.

The Franchise Agreement

Nevertheless, in the UK, you need to enter into a written franchise agreement as franchisee with your franchisor, which details the mutual responsibilities of both the parties. It generally lasts a few years, and when the term is finished, the contract gets expired and must be renewed. The contract needs to be renewed at the franchisee’s option. Normally, a franchise agreement is not sold, transferred or assigned without the permission of the franchisor.

The Lease Agreement

A lease agreement is a document granting possession for a given period without conferring ownership. The Lease Agreement specifies the terms and conditions of a company by the tenant. A typical lease will generally include provisions such as:

  • abandonment of premises
  • lump sum rent
  • alterations and improvements
  • assignment and subletting
  • attorney fees
  •  broker
  • commencement date
  • condition of the premises
  • contingencies, default by landlord or tenant
  • exclusivity
  • force majeure
  • hours of operation
  • indemnification
  • ingress and egress
  • landlord’s maintenance obligations
  • landlord’s right to access
  • leasehold improvements
  • maintenance and repair
  • option to purchase
  • option to renew
  • parking
  • rules and regulations
  • services and utilities
  • signage and term