BBC Lawyers

Compulsory franchise conditions

These conditions are compulsory, even if they are not written in the agreement:

  • if the premises are leased from the franchisor, a copy of the lease must be provided to the franchisee;
  • if the franchisee has to contribute to a marketing co-operative fund, the franchisor must supply a financial statement of the funds activities;
  • the franchisor cannot stop the franchisee from joining or forming a franchisee association;
  • the franchisee can end the agreement within seven days of signing;
  • the franchisor must provide a current Disclosure Document within 14 days of being requested - this is limited to one a year;
  • the franchisor cannot unreasonably consent to transfer the franchised business, except in certain circumstances;
  • in most cases the franchisor must give reasonable notice of an intention to end the franchise agreement, and allow the franchisee a reasonable time to fix any alleged breach.
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