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What advice can I expect from a solicitor during negotiations with a franchisor?
The franchise agreement is not negotiated and amended for each franchisee. To do otherwise would be an administrative nightmare and cause dissention within the network if some franchisees were on a better deal than others. Franchisors will, therefore, adopt a ‘take it or leave it’ attitude to their franchise agreement. You might think that there is little point in going to the expense of instructing solicitors to advise on the terms of the franchise agreement, but you would be wrong. The advice that you will receive from an experienced franchise lawyer can be likened to a survey on a house you want to buy. The survey report, like the franchise report, can’t put right any deficiencies, but you need to enter into the transaction with your eyes open. The report should highlight those provisions in the franchise agreement that are unusual, unfair or unworkable. If there are, it might indicate that the franchisor has not been sufficiently sophisticated in the preparation of the legal documentation. Alternatively, the report could be reassuring and confirm that the agreement has been well drafted and adopts a standard franchise approach.
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Companies to Consider
Canopy Children’s Nurseries
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Available upon request
Fixed sites can earn up to £16,000 per month with profit margins of 65%
£1.2m annual turnover
Third party, subject to status
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