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
Does a franchisee buy a franchise for a limited time period only?
John Pratt writes:
The short answer is yes. While it is, in theory, possible for a franchise to be granted in perpetuity, it would make no sense for either a franchisor, who may be stuck with a franchisee who was underperforming, or a franchisee who may, after a period of time, want to retire.
In the UK, the majority of franchise agreements are granted for five years. Some are granted for 10 years and very expensive (in terms of initial investment) franchises are granted for the duration of the lease of the premises, which is normally 25 years.
The reason a five-year term is popular is that there are provisions of UK/EU competition law that enable restrictions to be imposed for five years, but not longer. Therefore, franchisors tend to choose a five-year period, provided it’s long enough to enable a franchisee to recover their investment.
Usually when a five-year term is granted, the agreement envisages two automatic renewals, provided the franchisee has performed properly under the franchise agreement. So in effect it would last for 15 years and at the end of that period there would be nothing to stop the franchisor from renewing.
If a 10-year term is granted, you would normally expect one renewal term.
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
![Author: Vincent Anthony Author: Vincent Anthony](/images/made/15a98ba108c60ca5852ed10cddec73bd16bc798c.jpg)
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
![Author: Louise Harris Author: Louise Harris](/images/made/81463d158e3d961e27c0ebcdf232b7072d2f3fdf.jpg)
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
![Author: Shelley Nadler Author: Shelley Nadler](/images/made/30ede99be89f361526162856856bd0d4018f3a4b.jpg)
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
![Author: Alan Wilkinson Author: Alan Wilkinson](/images/made/65741c6bb70d1e745499072da5482c43f7dea846.jpg)
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
![Dyno-Rod Plumbing logo](/images/made/images/uploads/companies/Dyno-Rod_Logo_75_75_s.jpg)
Start your own Dyno-Rod Plumbing franchise
Yes
Find Out MoreN/A
![Dyno-Rod Plumbing logo](/images/made/images/uploads/companies/Dyno-Rod_Logo_75_75.jpg)
Request Free Information
Send a free enquiry to Dyno-Rod Plumbing for further information!
![Mobile App City logo](/images/made/images/uploads/companies/Mobile_App_City_logo_75_75_s.jpg)
Start your own Mobile App City franchise
Yes
Find Out More£100,000
![Mobile App City logo](/images/made/images/uploads/companies/Mobile_App_City_logo_75_75.jpg)
Request Free Information
Send a free enquiry to Mobile App City for further information!
![Fat Phill’s logo](/images/made/images/uploads/companies/Fat_Phills_logo_75_75_s.jpg)
Start your own Fat Phill’s franchise
Yes
Find Out MoreN/A
![Fat Phill’s logo](/images/made/images/uploads/companies/Fat_Phills_logo_75_75.jpg)
Request Free Information
Send a free enquiry to Fat Phill’s for further information!
![Amorino UK logo](/images/made/images/uploads/companies/Amorino_logo_75_75_s.jpg)
Start your own Amorino UK franchise
Yes
Find Out MoreN/A
![Amorino UK logo](/images/made/images/uploads/companies/Amorino_logo_75_75.jpg)
Request Free Information
Send a free enquiry to Amorino UK for further information!
![Business Partnership logo](/images/made/images/uploads/companies/Business_Partnership_new_logo_75_75_s.jpg)
Start your own Business Partnership franchise
Yes
Find Out MoreN/A
![Business Partnership logo](/images/made/images/uploads/companies/Business_Partnership_new_logo_75_75.jpg)
Request Free Information
Send a free enquiry to Business Partnership for further information!
Companies to Consider
![Newsletter Signup](https://cdn.what-franchise.com/assets/images/misc/sidebar-newletter.jpg)
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Why business coaching is a springboard to franchising success
Added one day ago | 2 min read
-
How to run a successful dessert restaurant
Added 3 days ago | 2 min read
-
Extra Help targets further expansion
Added one week 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 -
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