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
What types of restrictions are set out in the franchise agreement?
Franchise agreements contain restrictions on both the franchisor and franchisee. Usually there are more restrictions on the franchisee, because the franchisor wants to ensure compliance with the business model and consistency and efficiency across the franchise network. Some franchisors accept restrictions on operating or licensing in a franchisee’s territory. This exclusivity enables the franchisee to maximise its opportunities in its market. In return, the franchisee will normally agree to keep out of other franchise territories. There will be restrictions placed on the franchisee to enable the franchisor to control standards and consistency across the network. These will relate to premises, brand and advertising approvals and strict compliance to business methods and standards. Particularly key for the franchisor are restrictions on the franchisee post termination. These seek to prevent the franchisee from competing, misusing confidential information or poaching staff. They are designed to protect the franchisor, whose brand and system helped build the franchisee’s business. Equally, the franchisee cannot be unfairly restricted from earning a living or lawfully competing with the franchise. English law has a principle of ‘freedom of contract’, which broadly gives effect to what parties freely agree. However, particular restrictions, especially exclusivity terms and post termination restrictions, need to be considered in the light of UK and European competition law and justified.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
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
Start your own The Urban Chocolatier franchise
Yes
Find Out More£872,000
Request Free Information
Send a free enquiry to The Urban Chocolatier for further information!
Start your own Sojubar franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Sojubar for further information!
Start your own Fun Fest for Children franchise
Yes
Find Out MoreFrom £30,000
Request Free Information
Send a free enquiry to Fun Fest for Children for further information!
Start your own Canopy Children’s Nurseries franchise
Yes
Find Out More£100,000+
Request Free Information
Send a free enquiry to Canopy Children’s Nurseries for further information!
Start your own SmartPA franchise
Yes
Find Out More£84,000 - £120,000
Request Free Information
Send a free enquiry to SmartPA for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchises with funding plans in 2024
Added one month ago | 2 min read
-
How Fun Fest’s franchisees are achieving £500,000 turnovers
Added 2 weeks ago | 2 min read
-
How URBAN went from hometown hero to national name
Added about 3 weeks 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 -
Under 50k
If you have experience and more to invest
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