Joint ventures and franchise arrangements can be great for a business, offering the opportunity for new markets and increased scale. They can however result in restrictions and potential conflict.
As with all new approaches, the key is to understand the issues and agree the right approach.
Joint ventures can really benefit both businesses, potentially opening up new markets and adding breadth to operations. As you would expect, we always advise the importance, when agreeing the venture, of being clear on liabilities, payment arrangements, future options and cancellation terms for example.
A franchise can offer similar advantages. When taking on a franchise it’s important to fully understand, the financial commitments, the exclusive rights, copyright, trademarks and other intellectual property rights. Building up a successful business is great, so it’s important to understand what happens at the end of the franchise agreement i.e. who benefits and in what way.
Most franchise organisations will have their own legal advisers, so it is important you gain independent legal advice and where appropriate support in negotiating the agreement, this is where we can really help.