Sectors and Industries

Franchising

A franchise is a type of license that provides franchisee access to a franchisor’s proprietary business knowledge, processes, trademarks, and branding, while at the same time allows the franchisee to have economic benefits by selling a product or service under the franchisor’s business name.

Our team can provide legal advice and consulting services, in the area of franchising.  We shall walk all the relevant paths alongside, to determine the most effective expansion strategies both within your domestic markets and internationally, advising on franchising, licensing, distribution, agency, eCommerce, multi-channel & hybrid structures. Whilst we have acted for some reputable and international brands, we are also committed to helping small and medium-sized businesses achieve their growth objectives. We work with franchised businesses of all sizes in every step of the franchise process. We efficiently review and advise prospective franchisees on their franchise investment. After conducting our research we can provide clients with the franchise capability document, which is intended to constitute an assessment guide in considering potential business expansion through franchising. This guide aims to assist, primarily, prospective franchisors in the following ways:

  1. Decide whether franchising is an appropriate model for their business.
  2. Decide whether franchising is an economically viable and/or sustainable route for business expansion.
  3. Delineate certain risks associated with franchising.
  4. Prepare them to answer franchisees’ potential questions.
  5. Prepare them to approach and attract potential franchisees.
  6. Consider the alternative of master-franchise instead of direct franchising.

We are committed to addressing certain issues that the Client needs to be aware of, before making a franchise offer.  We will assist the Client to design the franchise system itself,  and we shall focus on matters that come up after the implementation of a franchise system.

Intellectual property rights are an essential part of all Franchise Agreements and contain licenses of Intellectual property rights (IPRs) in relation to trade names; trademarks; image; reputation; exclusive manufacturing or selling rights; and goodwill. Our team may assist its Clients with the preparation and drafting, negotiating, and reviewing of  Franchising Agreements, Manuals, Policies, and Procedures for both the Franchisee or the Franchisor. We may also assist in the branding and Intellectual Property protection in Franchising Agreements. Our services include the protection management, allocation, arrangement of IPRs, provision of assistance, and counseling during the Due Diligence procedure and the compliance with the Franchising Conditions procedure.

Apart from assisting our clients to allocate and arrange their IPRs and providing them during the Due Diligence procedure and the compliance with the Franchising Conditions procedure, we also share our experience to assist clients in avoiding and minimizing the risk of disputes. We can also provide our services when it comes to Franchise Litigation. We are fascinated by providing pragmatic cost-effective solutions to franchise disputes. If a dispute cannot be settled out of court, we have the knowledge and experience to constructively defend our Clients’ rights and best interests before the court. We have wide-ranging and extensive practice in initiating or defending our Clients before the district courts of the Republic of Cyprus. We can either work to file and litigate for our Clients’ legal claims or defend them in case any action is brought against them.  We may also represent our Clients before the Supreme Court of the Republic of Cyprus, as the case may so require. We can represent our Clients in Franchise Litigation claims that are construed under domestic laws or European and International Conventions and our team works with clients on a wide range of cases such as:

  • Jurisdiction Issues
  • Royalty and Marketing Fee Disputes
  • Breach of the Franchise Agreement
  • Fraud and Misrepresentation
  • Breach of Non-compete agreements
  • Wrongful and Post-Termination Issues