The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Are franchise agreements likely to be amended as a result of the COVID-19 crisis?
John Pratt writes:
At the moment, nobody knows. Franchise agreements are all different, so the first thing any franchisor would want to do is have a clear idea of what they would want their franchise agreement to say should a similar situation arise.
The focus of attention is likely to be the ‘force majeure’ clause, which suspends a contract during periods when it is impossible for franchisees to perform.
Franchisors may want to specify that franchisees must, during any period of force majeure, comply with the franchisor’s instructions concerning their dealings with customers, so as to continue to maintain customer loyalty.
While certainly franchisees would want to see a clause that says during a force majeure event they do not have to pay continuing fees, it’s unlikely that franchisors would want to concede that.
Indeed, it would be dangerous for them to do so because franchisors will want to look at each franchisee’s financial position and make an individual assessment.
As a result, another area that would need to be reviewed is the extent to which franchise agreements should contain a clause that confirms all franchisees would be treated similarly, because franchisors in a situation like COVID-19 would want to treat franchisees differently.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in
How important is it to get an accountant to check the financial information provided by a franchisor before I invest?
Answered by Alan Wilkinson
Alan Wilkinson writes: When considering if a particular franchise is right for you, a key factor is... read more
Answered by John Pratt
John Pratt writes: The short answer is no. Being a franchisee is not dependent on high educational... read more
Answered by Mark Meyer
Mark Meyer writes: The pandemic has accelerated the trend commonly described as ‘the death of the high... read more
Answered by Shelley Nadler
Shelley Nadler writes: The law prohibits anticompetitive agreements that fix prices between businesses. A franchisee therefore controls... read more
Exciting Franchise Opportunities
Companies to Consider
Franchise can be in profit in year two, with net profits rising from 7% to 40% on maturity
£14,000 per week
Multi-unit opportunities available
£60,000 net profit
Footlights Theatre School &...
InHabit Property Franchising
Profit of £50,000-plus
Jackson Fire & Security
Ask for more information
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added one year ago | 2 min read
Added 22 hours ago | 2 min read
Added about 5 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news