[Blowfish]

I have asked the same question in the UK business forum but nobody has answered yet I know they used to have a franchisee forum/thread but no longer, any how here is my query:-
I am looking at a couple of franchises and have a preferred option. However reading the agreement the term is five years with right to renew for a further five years provided I meet with with ....(the usual clauses) the last clause though states the new agreement may not contain further renewal rights.
Is this usual clause in a franchise agreement? does it also mean that after 10 years, even if I am doing well they could remove the franchise and sell it to someone else? I was under the understanding that there would be a term say 5 years with renewal rights that would be ongoing until I sell/quit (providing I met with all the usual clauses)?
Are there any other Franchisee's with this type of renewal issues? Hope someone can give me some insight.

[IP2]

That does sound quite odd and as you say, could affect the value that you may be able to raise from selling the business. I am no expert in this field, but I think you are quite right to be concerned. Have you approached the company for clarification on the matter?

[Blowfish]

Its OK they have removed it from the agreement, They never really understood why it was in there, just there advisor's put it in. Thanks in any case

[saracen]

Blowfish

there are many obscure clauses in agreements and by the sounds of it you have carefully read your agreement. I'd recommend you have a legal body go over it for you. May cost you £300 but its a small price for peace of mind when entering a 5 or 10 year contract.

Most franchises run 10 yrs with a renewal after 5 years. This break if there for yours and the fraschisors benifit in case you want to get out or they may not want you with them no more.

All franchise agreements a weighted on the franchisors side and not the franchisee, so be aware of that. Agreements can be negotiated so they are edging slightly more in your favour, again always best paying for the services of a solicitor.

Best of luck in your future business whatever it may be. If your ever looking to enter the food trade i can recommend an excellent opportunity which works straight away with fantastic in demand products and a first class management team.


All the best.

[Blowfish]

Thanks for that, I will get the agreement looked at but I think It will be more like £400 - £500 +VAT! I am sure that's why the solicitors make the agreements so complicated, jobs for the boys!

[Lime One]

Well we provide this agreement review service at just £295 inc VAT and tackles the stuff you need to change and the bits that already worry you. We get the agreement from you and then you get 60 mins of all the key points in a telephone call. Forewarned is forearmed and all that