{"id":2971,"date":"2022-10-20T15:52:14","date_gmt":"2022-10-20T13:52:14","guid":{"rendered":"https:\/\/sciberras.legal\/?p=2971"},"modified":"2024-04-03T10:56:19","modified_gmt":"2024-04-03T08:56:19","slug":"franchising-contracts-explained","status":"publish","type":"post","link":"https:\/\/sciberras.legal\/fr\/2022\/10\/20\/franchising-contracts-explained\/","title":{"rendered":"Franchising contracts explained"},"content":{"rendered":"<p class=\"wp-block-paragraph\">A franchising contract or franchising agreement is a contract under which the franchisor, being the owner of a business or brand, grants the franchisee the rights to operate a business, (or sell, or distribute goods or services) identified or associated with the franchisor&#8217;s trademark.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Becoming a franchisee means,&nbsp;an individual or business buys into the original company by purchasing the right to sell the franchisor&#8217;s goods or services under the existing business model and trademark name.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, an Italian shirt company, named SHIRTS owns 20 shops in the north part of Italy. They would like to expand their business in Italy and in other European countries. So, they create a business franchising model to be able to partner with other businesses to expand their number of shops named SHIRTS. In this type of contractual business model or relationship, SHIRTS, known as the franchisor, allows an independent business owner, called the franchisee, to use the branding, business model, and other intellectual property of SHIRTS, to sell such clothing in other shops in different locations and different countries, also called SHIRTS.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The franchising industry is very versatile offering different types of franchise arrangements, options, and investment ranges. The typical duration of a franchise agreement is usually 10 years, and such contract will spell out the conditions under which the franchise can be sold to someone else, which can be stringent to ensure that any future franchisee is qualified enough to run the business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Generally, the franchisee makes a one-time initial fee payment to the franchisor upon signing of the contract, as an entry fee. Besides, the franchisee might pay royalties on sales, marketing and advertising assistance fees, or equipment and supplies for the shops. The franchise agreement will also stipulate that the franchisee may only operate the franchise in an assigned territory or country and may also limit the right of the franchisee to sell online.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s important to note that the franchise agreement should outline the rights and&nbsp;obligations&nbsp;of both the franchisor and the franchisee. The main purpose of this contract is to protect the intellectual property and products or services&nbsp;of the franchisor. It will also hold certain obligation so that each franchisee operates the franchise consistently. It\u2019s good to know that a franchisor is responsible for the overall brand reputation management, whereas the franchisees are responsible for&nbsp;marketing their businesses in their assigned market areas. However, the franchisees are partners and they also play an important role in protecting and fostering the brand&#8217;s image.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you are thinking to expand your business by creating a franchising model, or you are interested in starting a new business as a franchisee, our lawyers will be able to guide you legally and commercially on anything related to franchising. Contact Dr Adrian Sciberras on <a href=\"mailto:asciberras@sciberras.legal\">asciberras@sciberras.legal<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cet article est \u00e0 titre informatif seulement et ne doit pas \u00eatre interpr\u00e9t\u00e9 comme un avis juridique.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong><em><strong><em><strong>Article r\u00e9dig\u00e9 par Mme Charlene Sciberras, B.A. (Hons), r\u00e9dactrice invit\u00e9e, est une sp\u00e9cialiste du marketing et de la gestion d'entreprise avec un accent particulier sur les questions d'entreprise, comptables et juridiques.<\/strong><\/em><\/strong><\/em><\/strong><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em><strong>Sciberras Advocates, fond\u00e9 par Dr Adrian Sciberras, est un cabinet d'avocats bas\u00e9 \u00e0 Malte. Le cabinet s'enorgueillit d'\u00eatre multidisciplinaire, innovant et flexible afin de r\u00e9pondre aux \u00e9volutions et aux d\u00e9fis du paysage juridique local et international. Quelle que soit la complexit\u00e9 des demandes priv\u00e9es ou d'entreprise, Sciberras Advocates propose des solutions juridiques pratiques et rentables pour atteindre les r\u00e9sultats souhait\u00e9s. Vous pouvez contacter Sciberras Advocates par t\u00e9l\u00e9phone au <a href=\"tel:+35627795222\">+35627795222<\/a>ou par courriel sur <a href=\"mailto:info@sciberras.legal\">info@sciberras.legal<\/a>.<\/strong><\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>A franchising contract or franchising agreement is a contract under which the franchisor, being the owner of a business or brand, grants the franchisee the rights to operate a business, (or sell, or distribute goods or services) identified or associated with the franchisor&#8217;s trademark. Becoming a franchisee means,&nbsp;an individual or business buys into the original [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2972,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-2971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-updates"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Franchising contracts explained - Sciberras Advocates<\/title>\n<meta name=\"description\" content=\"Sciberras Advocates can assist with the legal aspect of franchising contracts in Malta by drafting and reviewing such documents.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sciberras.legal\/fr\/2022\/10\/20\/franchising-contracts-explained\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Franchising contracts explained - 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