Franchising

A franchisor is a supplier who allows an operator (“franchisee”), to use the supplier’s trademark and distribute the supplier’s goods. In return, the operator pays the supplier a fee.

It is important for both franchisors and franchisees to engage a specialist corporate and commercial lawyer to represent their interests for the following reasons:-

  • From a franchisor’s perspective, he would want to ensure that the franchisee complies with his systems and methods of operating the business, and reduce the risk of the franchisee breaking the contract in the event that the business does not work out.
  • From a franchisee’s perspective, after paying a visit to the franchise headquarters and being given a copy of the franchise agreement, he would want a lawyer to review it and propose drafting amendments to protect himself legally since franchise agreements are usually one-sided and impose heavy obligations on franchisees.

Cost:

  1. Draft a custom-made franchise agreement for a franchisor after listening to their specific needs - S$5,000.

    Payment option 1: Pay upfront and get 10% discount.

    Payment option 2: Pay $3,000 deposit and pay balance $2,000 on the earlier of three months or on circulation of the final draft franchise agreement.

  2. Reviewing a franchise agreement for a potential franchisee, giving written legal advice and proposing drafting amendments – S$600 (Full upfront payment required)

  3. Review and amending the franchise operations manual drafted by the franchisor – S$600 (Full upfront payment required)

  4. Assist management of the franchisor in drafting the franchise operations manual from scratch including attending up to five (5) site visits to the client’s operations to observe and understand the business - $12,000. Same day guarantee does not apply.

    Payment option 1: Pay upfront and get 10% discount.

    Payment option 2: Pay $8,000 deposit and pay balance $4,000 on the earlier of three months or on circulation of the final draft operations manual.

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