Knights plc
7 Contributions by Knights plc Experts
PRACTICE NOTES
Role and remit
Role and remit is an international, not‑for‑profit association headquartered in Belgium. Created in 1972 by the French Franchise Federation, the Italian Franchise Association, the Belgian Franchise Federation and the Netherlands Franchise Association, it exists to champion, safeguard and represent the franchise sector operating across Europe. The EFF is formed of single accredited national franchise associations from countries that satisfy the EFF’s Statutes, as set out in Article 7, Conditions of Admissions. Membership is restricted to one association in each country. The EFF presently counts 20 members. Its objectives are to foster the development of ethical franchising in Europe and to defend the sector by advancing an evolving European Code of Ethics (Code) for franchising. The EFF likewise backs the principle that each European nation should have one credible, representative franchise association, which will uphold ethical franchising by requiring its members to
EU Law
PRACTICE NOTES
There are many routes by which disputes may surface in a franchise setting, and these risks can be reduced by the terms you place in the franchise agreement and the way it is properly monitored. It is crucial that the agreement is not treated as a file to be tucked away and ignored until difficulties arise. Consistent oversight strengthens that mitigation. This Practice Note sets out several core provisions in franchise agreements, and within the wider franchise framework, that help to minimise the chance of conflict between franchisor and franchisee. Do not let it sit in a cupboard until issues appear.
Misrepresentation
A principal focus of the franchise agreement is to limit misrepresentation claims against the franchisor. Franchisees often cite being misled into purchasing the franchise as a justification for seeking early termination. The agreement combats this contention through a number of important
Commercial
PRACTICE NOTES
This Practice Note explores the purpose and scope of the British Franchise Association (the BFA) within the UK franchising industry. It reviews the legislative and regulatory environment of the sector, together with the BFA’s membership requirements, its Code of Ethical Conduct, the BFA’s complaints and appeals procedures, the sanctions the BFA may apply to its members, and the BFA’s relationship with the European Franchise Federation...
Role and remit
The BFA was established in 1977 to evaluate and accredit franchising businesses operating in the UK. As set out in its Articles of Association, the BFA’s objectives are to:
advance the interests of franchisors
secure adherence to its Code of Ethical Conduct
provide guidance on all franchising enquiries
build trust and confidence in BFA-accredited franchises
deliver education and training in relation to franchises, and
enhance efficiency and economy in
Commercial
PRECEDENTS
[ insert name of Franchisor ]
[ insert Franchisor’s address ]
Dear [ insert Franchisor name ],
Proposed franchise agreement to be entered into between [ insert name of franchisor ] and [ insert name of franchisee ] (the ‘Agreement’)
The Franchisee acknowledges that despite clause [ Acknowledgement clause where Franchisor advises Franchisee to seek advice ] of...
Commercial
PRECEDENTS
[ On the official letterhead of the FRANCHISEE adviser ]
[ Enter the franchisor adviser’s name ]
[ Enter the franchisor adviser’s address ]
Dear [ Enter the franchisor adviser’s name ]
The contract proposed to be entered between [...
Commercial
PRECEDENTS
This Agreement is entered into on [ insert date ]
Parties
[ insert name ] [ of, or incorporated in [ insert jurisdiction, eg England and Wales ] under number [ insert company number ], with its registered office at [ insert address ] ] (the Seller);
[ insert name ] [ of, or incorporated in [ insert jurisdiction, eg England and Wales ] under number [ insert company number ], with its registered office at [ insert address ] ] (the Buyer);
[ insert name ] [ of, or incorporated in [ insert jurisdiction, eg England and Wales ] under number [ insert company number ], with its registered office at [ insert address ] ] (the Franchisor).
(each being a party and together the parties)
Background
(A) The Franchisor has licensed the Seller to run the Franchise Business.
(B) The Seller has agreed to sell and the Buyer has agreed to
Commercial
CHECKLISTS
A checklist to capture instructions from either a franchisor or a franchisee in relation to a proposed franchise agreement, covering parties, general matters and background.
PARTIES
Full legal name and full postal address of the franchisor
If the franchisor is a limited company, please state its registered office address, company registration number and accounting reference date
If the franchisor is not incorporated, on what date are its accounts prepared each year?
Will franchisees operate as sole traders, traditional partnerships, LLPs, or limited companies?
Is a guarantor required for the franchisees’ obligations under the agreement?
Where franchisees are companies, does the franchisor insist on a personal guarantee from the principal shareholder, to secure recovery of any potential losses or damages?
Must the franchise be owner-run, or is it intended as a management
Commercial
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