UK Franchising: Selecting Franchisees, Market Entry Alternatives, Drafting Agreements, Self-regulation and Competition Law

Published by a LexisNexis Commercial expert

Practice notes

This Practice Note is a practical ‘how to’ on appointing a franchisee. It outlines a synopsis of franchising, sets out alternative routes to market, highlights considerations before choosing a franchisee, and key points to weigh up when negotiating a franchisee agreement.

What is franchising?

Franchising is a commercial model where the franchisor (A) permits the franchisee (B) to supply A’s goods or services using A’s established brand, operating know‑how, processes, technology and systems, in return for fees or royalties payable to the franchisor. It is a contractual arrangement under which the franchisor delivers a proven business format, brand recognition, training, continuing support, and access to marketing collateral and resources. In return, the franchisee agrees to follow the franchisor’s established methods, comply with brand standards, and pay fees or royalties for the assistance and advantages provided. Franchising appears in several formats. A franchisee may sell the franchisor’s goods or services under the franchisor’s recognised brand name, for example fast‑food chains and retail outlets. The franchisee might also act as a sub‑franchisor within a specified geographic area, holding the right to award franchises to other individuals inside that territory and as set out in this guidance and summarised throughout the note herein...

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Web page updated on 22/05/2026

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