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.
Close
Can I Invest in a Franchise With a Business Partner?
Shelley Nadler writes:
You can. However, the partner will have to be assessed by the franchisor in the same way you will be in order to ascertain their suitability for the franchise.
You may decide to set up a limited liability company, so that the finances of the franchise are kept separate from your own. You will need to incorporate the company at Companies House.
You and your business partner would be directors and shareholders of the limited liability company. A shareholders’ agreement between you and your business partner would deal with how profits will be distributed (or losses) and what will happen if one of the shareholders wishes to leave the business.
If you choose to operate the franchise as a partnership, you and your business partner will need to be parties to the franchise agreement. Each partner will be individually and jointly liable for the franchisee’s obligations under the agreement and to any creditors.
If you’re going to run your franchise through a partnership, you will need to enter into a partnership agreement with your business partner, which will regulate how the partnership is operated.
Another option is to set up a limited liability partnership. In an LLP, each member shares in the risks, costs, responsibilities and profits of the business.
Partners’ liability is limited to the amount of money they have invested in the business. LLPs must be registered at Companies House.
Shelley Nadler is a legal director in Bird & Bird’s international franchising team and has many years’ experience of advising on all aspects of franchising.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Start your own PACK & SEND franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to PACK & SEND for further information!
Start your own Tariq Halal Meat franchise
Yes
Find Out More£1.352m (estimated EBITDA £236k)
Request Free Information
Send a free enquiry to Tariq Halal Meat for further information!
Start your own No Letting Go franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to No Letting Go for further information!
Start your own The Fruit and Veg Man franchise
Yes
Find Out More£150,000
Request Free Information
Send a free enquiry to The Fruit and Veg Man for further information!
Start your own Zerorez franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Zerorez for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchises with funding plans in 2024
Added 2 months ago | 2 min read
-
How Fun Fest’s franchisees are achieving £500,000 turnovers
Added one month ago | 2 min read
-
How URBAN went from hometown hero to national name
Added one month ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news