Franchise meaning

This Checklist outlines the practical considerations for a franchisor when launching an international franchise. A franchisor may wish to grow its network abroad to tap new territories and emerging markets, usually by entering into an international franchise agreement or an international development agreement. Nevertheless, the agreement and the structuring of the international arrangement can also present challenges and complications. This Checklist identifies some of the practical issues that a franchisor planning to expand overseas might encounter. Issues The franchise agreement will state that the franchisee must run the business in line with the franchisor’s operations manual. However, the business method described in that manual may not have been piloted or proven in the overseas territory. It will have been devised on assumptions tailored to the local market. A franchisee may therefore struggle to implement the method in the overseas territory if reliant on those assumptions. A franchisee is often contractually obliged to use the marketing material supplied by the franchisor under the agreement...

This Checklist examines the pros and cons of adopting a franchising model from the franchisor’s viewpoint. Franchising attracts steady attention as a route to market, but would-be franchisors should assess carefully whether it suits their particular operation. Below is a summary of the advantages and disadvantages of franchising from the franchisor’s standpoint. Advantages Franchising is a well-established route for scaling a business, with numerous high-profile success stories, including pizza brands, hotel groups and mobile phone shops. Many high street banks may extend favourable lending to franchise businesses, as they can be perceived as presenting lower risk than alternative models. The franchise approach can demand far fewer staff than a centrally owned network, as the owner does not need to open and run multiple outlets. The franchisor can apply franchisees’ fees to fuel growth and lessen debt. These fees provide a key, predictable annual income stream and, in some cases, their total can meet operating expenses. ...

This Checklist sets out the issues that should be considered for inclusion in a franchising operations manual The franchise operations manual captures the real-world execution of the franchisor’s system, describing the tasks the franchisee must carry out and the support it can anticipate from the franchisor. Under the franchise agreement, the franchisee is bound to follow the manual to the letter, a discipline widely recognised as driving commercial success. The franchisee will typically consult it daily, particularly during the early phase of trading. The manual might be prepared by the franchisor, or by an independent consultant working with the franchisor’s input. If an outside consultant is engaged, the franchisor must be satisfied that the consultant understands the franchise business. Without that familiarity, the manual may fail to address risks and other essential points that require attention, which could leave the franchisor vulnerable and create further exposure for the franchisor...

Aroma Franchise Company, Inc v Aroma Espresso Bar Canada Inc. 2024 ONCA 839 What are the practical implications of this case? The ruling confirms that, unless the parties stipulate otherwise in their arbitration clause, the Model Law’s objective yardstick governs both arbitrators’ disclosure duties and their potential disqualification in international arbitrations seated in Ontario. In the absence of express agreement to the contrary, that objective benchmark is the applicable test. As the Model Law is embedded in the international commercial arbitration statutes of every other Canadian province, and incorporated into the provisions of the Code of civil procedure of Québec, the judgment carries significance across Canada and will be relevant nationwide. The Court further determined that the application judge erred in relying on pre‑appointment communications between the parties to find a reasonable apprehension of bias, given those exchanges were never put before the arbitrator; it was inappropriate to draw such an inference from material unknown to the tribunal. Overall, the decision serves as a timely prompt to practitioners...

In this issue: UK private actions UK subsidy control EU antitrust EU competition policy Daily and weekly news alerts Caselex CAT issues judgment on allocation of undistributed damages following settlement in alleged rail ticket overcharge damages claim The CAT has delivered its ruling in Justin Gutmann v First MTR South Western Trains Limited and Another, addressing how to allocate undistributed damages left after a settlement. Brought by Mr Justin Gutmann as the Class Representative (CR) under section 47 of the Competition Act 1998, the claim alleged an abuse of dominance by Stagecoach South Western Trains Limited (SSWT) for not making ‘boundary fares’ sufficiently available to travelcard holders. Background In 2019, Mr Gutmann applied to commence opt-out collective proceedings under section 47B CA 1998 against First MTR and SSWT, which had operated the South Western rail franchise at different times. In October 2021, the CAT authorised him to act as CR in these proceedings and in parallel...

In this issue: Advertising, marketing and sponsorship Consumer protection Contracts Data protection International Supply chain LexTalk®Commercial: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&As Advertising, marketing and sponsorship ASA Ruling—25 June 2025 Three objections were lodged with the Advertising Standards Authority (ASA) about statements on the website of Bodystreet Franchise (UK) Ltd, a fitness studio promoting Electro Muscle Stimulation (EMS) training. The ASA upheld all three challenges. See: LNB News 25/06/2025 44. CMA proposes strategic market status designation for Google's search services The Competition and Markets Authority (CMA) has opened a consultation on designating Google with strategic market status for general search and search advertising under the Digital Markets, Competition and Consumers Act 2024. Proposed interventions include compulsory choice screens for search providers, fair ranking obligations, enhanced publisher controls, and data portability measures. The scope would cover Google’s...

This table outlines every concluded probe by the Czech Republic’s competition watchdog, the Office for the Protection of Competition (OPC), into suspected cartels, anti-competitive agreements and abuses of dominance (Articles 101/102 TFEU and national analogues) since 2018. Note—only investigations disclosed publicly are listed. 2026 Investigations under Article 101 TFEU/Article 3 of the Act on the Protection of Competition Electronics – HP TRONIC Zlín, spol. s r.o.: Restrictive agreement—RPM. Infringement decision announced—07/05/2026; fines totalling CZK 38,971,000 imposed. Household appliances – Elberry s.r.o.: Restrictive agreement—RPM. Infringement decision issued—09/01/2026; fines totalling CZK 767,000 imposed. Investigations under Article 102 TFEU/Article 11 of the Act on the Protection of Competition Online text advertising for property listings on dedicated real-estate portals – Seznam.cz: Concern that Seznam.cz abused a dominant position by charging higher unit prices to small-volume advertisers than to larger ones and by varying prices by region and franchise status. Commitments accepted—05/03/2026. Article 19a of the Act on the Protection of...

At common law, highway ferries fall into two types, identified by the routes they take. One type operates between towns or to a specified island, while the more usual type links two named highways, each situated on opposite sides of a body of water. The Highways Act 1980 (HiA 1980) deliberately leaves ferries outside the statutory definition of a highway, yet the common law regards them as comparable to highways, carrying particular rights and obligations. What sets a ferry apart from other forms of highway is: a ferry is a franchise vested in an individual or a corporation the power to operate a ferry carries both privileges and duties the ability to use a ferry is qualified and limited A ferry as a franchise The general principle is that anyone with a boat may transport a passenger across a navigable river; however, that principle yields where such use of a boat amounts to running a ferry. The ferry owner enjoys a...

Commercial contracts—Australia—Q&A guide This Practice Note offers a jurisdiction-specific Q&A on commercial contracts in Australia, featured in the Lexology Getting the Deal Through series by Law Business Research (published: October 2022). Authors: Baker McKenzie—Adrian J. Lawrence; Caitlin Whale 1. Is there an obligation to use good faith when negotiating a contract? Australian contract law does not recognise a universal duty to act in good faith during negotiations. Courts have nevertheless found that an express agreement to negotiate a particular issue in good faith can be enforceable, provided the clause is drafted with sufficient clarity so it can be given practical effect. In limited contexts, a statutory requirement to negotiate in good faith may arise. For example, the Franchising Code of Conduct obliges the parties to a franchise agreement to act in good faith towards each other, including when negotiating that agreement. While not a good faith duty, laws prohibiting misleading or deceptive conduct frequently affect bargaining conduct. The Australian Consumer Law prohibits a person in trade or...

[ 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...

[ 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 [...

This DEED of agreement is entered into on [ insert date ] Parties [ insert name of party ] [ of OR a company incorporated in [ England and Wales ] under number [ insert registered number ] whose registered office is at ] [ insert address ] (Franchisor); and [ insert name of party ] [ of OR a company incorporated in [ England and Wales ] under number [ insert registered number ] whose registered office is at ] [ insert address ] (Developer). (Each of the Franchisor and the Developer is a party and, together, the Franchisor and the Developer are the parties.) Background: The Franchisor has created the Method and established the Business. The Franchisor [ has applied to register OR is the registered proprietor of OR owns OR has the right to sub‑licence ] the Trade Marks. Seeking to grow its franchise network, the Franchisor is willing to appoint the Developer...

A caution against first registration A caution against first registration safeguards an interest in the unregistered land in question. If an application is lodged to register that land for the first time, HM Land Registry will serve the cautioner with formal notice of the application. Any individual asserting ownership of an estate in land, a rentcharge, a franchise, or a profit a prendre, or holding any interest affecting such a legal estate, may enter a caution. A caution against first restriction only grants the entitlement to be informed of an application for first registration and to object to any such application...