This makes the UK a fairly “friendly” jurisdiction for businesses looking to expand through franchising. But there are a number of statutory provisions in the UK that have important impacts on franchising, so be sure to obtain expert advice before you plan your expansion into the UK.
Goldstein Legal will help you understand what your options are and enable you to make the right decisions.
Before expanding into any overseas market, you will want to consider how well your intellectual property is protected in your new territory. Unfortunately, your own local trade mark registration may well be of little or no value overseas.
Trade Marks used in the UK need to be registered in order to maximise their strength. A trade mark can be obtained either specifically for the UK, or as a Community Trade Mark (CTM). CTMs are considerably more expensive than UK registrations, but they will cover you for a number of European territories in addition to the UK.
Both the UK Competition Act 1998 and Articles 101 and 102of an important EU Treaty regulate agreements that “have an effect on trade and restrict competition”, either in the UK or between EU countries. These can have a significant impact on franchising.
It is not possible to “contract out” of these rules, and making your franchise agreement subject to a non-EU jurisdiction will not make any difference. It is therefore important to obtain specialist legal advice from a franchise lawyer before you embark on franchising the UK.
Membership of the BFA is not essential, but it brings a number of benefits, so it may be worth consideration if you are entering the UK franchising market
If you plan to exhibit at a BFA-sponsored franchise show, the BFA will expect to you demonstrate:
If you want to become a full member of the BFA, the BFA will:
When expanding overseas, you have an important decision whether to make your franchise agreement subject to the laws of your own native jurisdiction, or whether to opt for the laws of your relevant overseas market. There are significant advantages and disadvantages of each approach. So talk to Goldstein Legal to ensure that you can make an informed decision.
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