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If I don’t want to renew my franchise agreement, can I take my customers with me?
You will need to check your franchise agreement to find out if this is possible. On the expiry of the franchise agreement, the franchisor will seek to protect the knowledge the franchisee has acquired of the franchisor’s system and the goodwill generated by the franchisee’s operation of the business. This means that the franchisor will include provisions in the franchise agreement that seek to prevent the franchisee from continuing to operate the same sort of business targeting his existing customer base from the same premises and/or area for a specified period of time. There is often what is called ‘a non-solicitation clause’ in a franchise agreement. A typical non-solicitation clause will state that the franchisee will not, for the period of one year after the termination or expiry of the franchise agreement, directly or indirectly solicit or tout for business from any person who was during the period of two years prior to such termination a regular customer of or in the habit of dealing with the franchisee’s business. The impact of a non-solicitation clause will depend on how it has been drafted. A franchisee should always take expert advice from a British Franchise Association affiliate solicitor on the implications of the franchise agreement coming to an end before the agreement actually expires.
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Exciting Franchise Opportunities
Companies to Consider
Profit of £50,000 and increasing thereafter
Guardian Angel Carers
Black Rooster Peri Peri
ROI within 18 months with an average net profit of 25%
Not Just Travel
To be discussed
Right at Home UK
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