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Why do franchise agreements seem to be heavily weighted in favour of the franchisor?

Author: Vicky Wilkes

Answered by Vicky Wilkes

Head of Legal at Aston Villa Football Club

Franchise agreements usually favour the franchisor and are generally an unnegotiated document offered to a franchisee on a ‘take it or leave it’ basis.The reason for this is that a franchisor will have spent considerable time and money in establishing and testing its franchise format. The franchisor therefore needs to protect its intellectual property and operating practices and must also ensure that the franchise concept is provided in a uniform way by all of its franchisees across the whole of its franchise estate. While one sided, this can be seen as a benefit in a franchise network since all franchisees in that network will be subject to the same terms, thus ensuring a uniform service and customer experience.

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