Franchising Legal services - mlplaw
Franchising Law
Franchising Law

Franchising Law

Franchising Legal Services

The process of franchising involves a franchisor granting a franchisee the right to use their business model, brand, and trademarks to operate a business, with the franchisee paying fees and following the franchisor’s systems.

Franchise contracts are complex and vary for each franchisor. Typically, a franchise agreement includes three categories of payment to the franchisor. First, the franchisee must purchase the controlled rights, or trademark, from the franchisor in the form of an upfront fee. Second, the franchisor often receives payment for providing training, equipment, or business advisory services. Finally, the franchisor receives ongoing royalties or a percentage of the operation’s sales.

Thinking of franchising your business or becoming a franchisee?
Our specialist franchising solicitors can help you navigate the legal complexities with confidence.

Request a consultation
Commercial Lawyers Manchester
Speak to our Specialist Franchising Solicitors Team

0161 926 9969

Services We Provide

For Franchisors:

  • Drafting franchise agreements and assisting with the preparation of operating manuals
  • Drafting, negotiating, and executing associated franchise contracts, including commercial leases, employment contracts, supply contracts, and third-party commercial contracts
  • Undertaking contract reviews to ensure compliance with changes in laws
  • Advising and enforcing intellectual property and trademarks designed to protect your business
  • Advising on data protection issues arising within a franchise network
  • Resolving disputes with franchisees over allegations of non-performance, breach of contract, misrepresentation, and termination or early exit
  • Advising and, where appropriate, taking action to enforce restrictive covenants against franchisees who are acting in breach of restraint of trade covenants, such as non-compete, poaching of employees and/or customers
  • Pursuing claims against third parties arising out of disputes connected to your franchise
  • Advising and acting in the expansion or sale of your franchise business
  • Drafting employment contracts and advising on employment matters, including when franchises are brought back “in-house” by franchisors

For Franchisees:

  • Reviewing your new franchise agreement and advising you on your obligations and rights
  • Advising and, where appropriate, taking action to prevent the enforcement of onerous restraint of trade covenants that seek to restrict your business activity during and after the termination of the franchise
  • Advising on your right to exit or terminate the franchise, including claims for misrepresentation and recovery of damages
  • Advising and, if applicable, taking legal or commercial action to resolve disputes with your franchisor
  • Advising on data protection issues arising within a franchise network
Contact us to find out how we can help

0161 926 9969

Why choose us

1. Expertise and Experience
Our Partner-led teams bring decades of experience supporting businesses of all types and sizes through various transactions, delivering a truly first-class service. We’re proud to be a Legal 500 recommended team, reflecting our commitment to excellence in corporate legal services.

2. Our Approach
We provide comprehensive business legal services to organisations of every shape and size through a dynamic and personal approach. Our commitment to you centres on reliability, flexibility, honesty, and transparency—values that underpin every client relationship.

3. Collaboration
We take the time to understand you and your business thoroughly, working alongside you while collaborating with other experienced specialists within our firm (including Employment, Commercial, Property and Disputes teams) to achieve results efficiently and effectively.

Testimonials

“Stephen and everyone at mlp have looked after myself, my family and my business now for well over a decade and we could not imagine dealing with anyone else for our legal advice. He has helped us grow our company from a small £2m turnover business to over £33m including countless property deals, Employment contracts, HR issues, all our commercial dealings and the acquisition of 17 stores and for all this we will be forever grateful. Plus, with us both being City fans, we have had a great 10 years of football to talk about before and after our business meetings. Tracy and I would just like to say thank you for all the help, advice and most importantly friendship.”

 

Simon Vardy, Sim Trava

“Our business relationship with Stephen goes back over nearly two decades which is testament to both his wide-ranging legal expertise and also his easy manner and working style. Stephen has provided constant support with our business and personal affairs over this time and we view him as both a trusted advisor and a friend. We have always found mlp to be approachable, flexible and efficient and continue to work with them on both a corporate and personal level.”

 

John

“We always receive timely advice and it is given in plain and understandable terms.”

Claire Gardner, MD Osborne Delta (Lightning Conductors) Ltd

“Very efficient and responsive in engaging clients, keeping them up to date on the progress of matters, and responding to queries.”

Legal 500

“A really great multidisciplinary team able to handle my firm needs, I have dealt with many solicitors in over fifty acquisitions and MLP stand out as pragmatic and proportional with sound, hand-on advice.”

Legal 500

“Stephen is great at simplifying situations and explaining legal processes in basic terms so that you are able to understand and make the right decisions for your business. He is responsive and supportive as well as extremely knowledgeable. We have used Stephen on two occasions and were delighted with his expertise and service given. I wouldn’t hesitate in recommending him to anyone needing commercial, legal support for their business.”

LD, Review Solicitors

“Stephen and his team of experts at MLP have been advising us since 2014 on areas ranging from commercial transactions and the legal due diligence around them to employment law, commercial disputes, and property. Always prompt to respond, I’ve found the help and advice I’ve received over the years is accurate, with the balance of risks clearly explained, but always accompanied with recommendations that are in a commercial context. Added to this, the personal and cheerful touch that is always present in their service makes them a delight to work with. I’d highly recommend them!”

MG, Review Solicitors

  1. What is the legal status of a franchise?

    The franchise agreement is a legally binding contract that outlines the rights and obligations of both parties. Due to the absence of franchising-specific legislation in the UK, you must rely on a well-drafted franchise agreement to protect your interests and ensure smooth operations across your network.

  2. What should I look out for in a franchise agreement before signing?

    It’s crucial to understand clauses related to fees, royalties, territory restrictions, duration, renewal terms, exit clauses, and non-compete provisions. Always seek legal advice before committing to ensure your rights are protected.

  3. Can a franchisor terminate a franchise agreement early?

    Yes, but only under certain conditions typically outlined in the franchise agreement—often involving a breach by the franchisee. Both parties should understand the termination rights and consequences to avoid potential disputes.

  4. What happens if there is a dispute between a franchisor and franchisee?

    Most franchise agreements include a dispute resolution clause which may involve mediation or arbitration before litigation. Our legal team can support you in resolving disputes efficiently, whether you’re a franchisor or a franchisee.


    Request a consultation

    Simply complete the form and a member of our team will be in touch





    Franchise Regulation and Compliance in the UK

    The franchise industry in the UK is a self-regulated market by the British Franchise Association (BFA). It is one of the few countries that does not have franchise-specific laws in place, making it a very attractive jurisdiction for many international brands looking to expand in the market.

    There are no requirements for registration and no obligations on franchisors to provide disclosure to prospective franchisees in a specific format, unlike the United States, for example. The BFA sets industry standards and provides a platform for franchisors, franchisees, suppliers, and advisors to share best practices, learning, and development, which encourages and supports ethical franchising.

    This makes the UK a very attractive location for international franchisors to branch out to, especially as part of a wider expansion plan. Each franchised business, depending on the sector within which it operates, will also be affected by sector-specific laws and regulations. For example, education or care sector franchisors and especially franchisees will need to comply with OFSTED (Office for Standards in Education), the Care Quality Commission or Welsh or Scottish Care Inspectorate, but there are some laws which will apply to all franchise businesses regardless of the sector.

    Franchising law also gives way to contract law, competition law, employment law, commercial law, data protection considerations, and many more. As most businesses will employ staff both at franchisor and franchisee level, issues such as employment status, national minimum wage compliance, holiday pay, rest breaks and use of zero-hour contracts are all relevant.

    The Data Protection Act 2018 is the retained version of the EU’s General Data Protection Regulation, and it is relevant when the franchisor requires access to the franchisee’s customer data. Hence, in addition to the usual requirements, parties must remember to include data-sharing provisions in their franchise agreement and ensure that customer-facing privacy policies refer to the franchisor and the relevant franchisee as parties who have access to customer data.

    This is just a quick summary of some of the relevant legislations in Franchising Law. To find out more about what you need as a franchisor/franchisee, contact our Commercial Law team at 0161 926 9969

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    The new data protection regulations, or GDPR as it is most commonly...

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    A ‘pre-nup’ for your commercial contract – dispute resolution clauses
     15th May 2018

    In the heat of agreeing a contract which promises all things positive,...

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    Do I need a visa to work in the UK?
     24th May 2018

    Prior to starting a job in the UK, an employer must check...

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    The World Cup: Goals For Employers
     5th Jun 2018

    Just when we thought the football season was over, from Thursday 14...

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    Worker or Self-employed? EAT find Addison Lee cyclists to be workers and not self-employed
     11th Jun 2018

    The latest high profile case brought by individuals challenging the so called...

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    Employers Guide to Apprenticeships
     17th Apr 2018

    What is an Apprenticeship? An apprenticeship benefits both employers and individuals, by...

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    EEA-workers in the UK labour market: Interim Update
     27th Mar 2018

    In July 2017 the Migration Advisory Committee (“MAC”) was commissioned by the...

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    Can you retract a job offer?
     27th Mar 2018

    It has recently hit the headlines that Uber have retracted an offer...

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    How do I bring a claim against my employer?
     14th Mar 2018

    Bringing a claim against your employer can be daunting, so we have...

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    3 mins read

    What visa do I need for the UK?
     16th Mar 2018

      Who needs a visa for the UK? British citizens, Commonwealth citizens...

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    3 mins read

    GDPR: Is consent enough to allow employers to process employee’s data?
     16th Mar 2018

    As part of our series of short blogs about the General Data...

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    4 mins read

    I have obtained a money judgment – how do I enforce it?
     19th Mar 2018

    If you have obtained a money judgment against a debtor, you may...

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    GDPR: Do employers need to update their data protection policies to make them GDPR compliant?
     20th Mar 2018

    As part of our series of short blogs about the General Data...

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    1 min read

    Spitting feathers – what does the Jamie Carragher incident tell us about how employers deal with misconduct outside of work?
     20th Mar 2018

    The details of the incident involving ex-Liverpool FC player Jamie Carragher do...

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    Security for Costs – levelling the litigation playing field?
     22nd Mar 2018

    What is it? An order for security for costs offers protection to...

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    4 mins read

    Summer is here: 5 Employment issues all employers face over summer
     26th Jun 2018

    Summer has landed and temperatures are set to soar. But as employers...

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    A coffee with Stephen Attree
     27th Jun 2018

    The legal industry has experienced a period of flux in recent years,...

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    5 mins read

    How does the development of AI (Artificial Intelligence) affect legal services?
     16th Aug 2018

    There is an AI buzz in the air at the moment –...

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    Twitter Q&A
     23rd Aug 2018

    For the last two weeks, our MLP business immigration specialist has taken...

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    2 mins read

    Schoolgirl awarded £16,000 in Pizza Hut sexual harassment case
     24th Aug 2018

    A London schoolgirl has been awarded compensation by an employment tribunal in...

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    3 mins read

    Complaint Against Care Home Upheld By Ombudsman – Is There an Alternative Cause of Action?
     26th Aug 2018

    A recent published decision by the Local Government and Social Care Ombudsman...

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    4 mins read

    Baffled by right to work checks?
     28th Aug 2018

    During the first quarter of 2018, the Home Office handed out £7.7...

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    2 mins read

    Beware the ‘offer of help’ from recruiters!
     11th Sep 2018

    Recruiters can be loved or loathed but if they are not approached...

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    Jose Mourinho v Anthony Martial and the right to paternity leave
     8th Aug 2018

    It has been reported in the media this week that Manchester United...

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    Retrospective sleep-in payments worth £400m put to bed
     3rd Aug 2018

    An Employment Appeal Tribunal (EAT) decision that a care worker working for...

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    Bad reviews – how to deal with them in 5 steps
     2nd Aug 2018

    “There is only one thing in life worse than being talked about,...

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    My employees are resigning, what can I do?!
     16th Jul 2018

    It’s been another interesting week for the Prime Minister, with ministers and...

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    Persons of Significant Control – are you compliant?
     16th Jul 2018

    Since June 2017 it has been a legal requirement for all companies...

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    Introducing mlpflex
     20th Jul 2018

    With new technology comes differing attitudes and approaches to both personal lifestyle...

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    2 mins read

    Top 7 tips for international students wanting to work in the UK
     25th Jul 2018

    Many international students at UK universities will be keen to continue their...

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    Employers’ guide to EU Settlement Scheme
     26th Jul 2018

    The Government is still trying to reach agreement with the EU on...

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    Proactive vs Reactive: use your time wisely
     30th Jul 2018

    The Telegraph has reported that one of the major ways businesses waste...

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    3 mins read

    Do you know about .eu?
     19th Sep 2018

    As the UK has voted to leave the EU, organisations and businesses...

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    4 mins read

    Employer’s CJRS Guidance Update
     5th May 2020

    At the beginning of May further guidance was published for employers in...

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    Everything you wanted to know about…Unfair Dismissal…but were too afraid to ask.
     7th May 2020

    This week we start our new series, examining key employment law concepts. ...

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    Chancellor confirms that the Coronavirus Job Retention Scheme is to continue until October 2020.
     12th May 2020

    The Chancellor of the Exchequer, Rishi Sunak, has today confirmed that the...

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    Returning to work: Who? How? When?
     12th May 2020

    On Sunday 10 May 2020, Prime Minister Boris Johnson announced significant changes...

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    Contact-tracing app: Dangerous tool or necessary evil? Data Protection and Privacy Vs “the greater good”
     14th May 2020

    Introduction Zoom quizzes, lockdown, social distancing, furlough: just a few of the...

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    Everything you wanted to know about…Annual Leave…but were too afraid to ask!
     15th May 2020

    The legislation and rules surrounding annual leave can often be difficult to...

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    Coronavirus Job Retention Scheme – Portal Open
     20th Apr 2020

    The Coronavirus Job Retention Scheme portal, allowing employers to reclaim up to...

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    1 min read

    Update – Further guidance on the Coronavirus Job Retention Scheme
     17th Apr 2020

    The Chancellor, Rishi Sunak, has recently announced that the Coronavirus Job Retention...

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    1 min read

    Furlough Leave – Update
     26th Mar 2020

    Following our recent blog on the Coronavirus Job Retention Scheme that was...

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    1 min read

    Coronavirus Job Retention Scheme
     27th Mar 2020

    Ever since the Coronavirus Job Retention Scheme was announced by the Chancellor...

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    3 mins read

    Workers to be allowed to carry over 4 weeks of annual leave for 2 years
     30th Mar 2020

    The government has announced it is allowing workers to carry over up...

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    1 min read

    Coronavirus Business Interruption Loan Scheme
     1st Apr 2020

    Following the Chancellor’s budget measures aimed at this period of disruption due...

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    2 mins read

    Sole Directors and the Coronavirus Job Retention Scheme
     2nd Apr 2020

    Following the Chancellor’s budget measures aimed at this period of disruption due...

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    2 mins read

    Further guidance on the Coronavirus Job Retention Scheme
     6th Apr 2020

    Very early on Saturday morning (4 April 2020), further Government advice on...

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    2 mins read

    UPDATE: Coronavirus Business Interruption Loan Scheme
     6th Apr 2020

    The Coronavirus Business Interruption Loan Scheme (CBILS) became live on 23 March...

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    2 mins read

    Furloughing employees and your return to work.
     22nd May 2020

    An interactive Q&A session on the do’s and don’ts of the Coronavirus...

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    1 min read

    Everything you wanted to know about…Disciplinary Procedures…but were too afraid to ask!
     27th May 2020

    Disciplining employees is an inevitable part of running a business and needs...

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    4 mins read

    The importance of updating Shareholders’ Agreements
     30th Jul 2020

    Shareholders’ Agreements – is your house in order? As we now start...

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    2 mins read

    Cross Option Agreements
     4th Aug 2020

    If you are a small or medium sized enterprise run by owner-managers,...

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    3 mins read

    Everything you wanted to know about…Grievances…but were too afraid to ask!
     6th Aug 2020

    From time to time, every employer will receive a grievance from one...

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    3 mins read

    Succession Planning for Business Owners Part 1 – Some Exit Options
     11th Aug 2020

    A large proportion of business owners running small to medium sized enterprises...

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    4 mins read

    WOULD YOU WANT TO CARRY ON SUPPLYING A CUSTOMER WHO COULDN’T PAY YOU?
     17th Aug 2020

    Covid Regulations for businesses mean that you may be required to continue...

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    4 mins read

    Succession Planning for Business Owners Part 2 – Issues to Consider
     19th Aug 2020

    When owners of a business are looking for an exit, there are...

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    3 mins read

    GDPR and sharing personal data: are you sufficiently protected in a post-Brexit world?
     9th Sep 2020

    Despite Brexit being all we seemingly heard about towards the latter end...

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    4 mins read

    TRADING TERMS – SIMPLE STEPS TO AVOID TRAPS FOR THE UNWARY
     28th Jul 2020

    How long has it been since you last reviewed your Terms & Conditions...

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    5 mins read

    Everything you wanted to know about…Redundancy…but were too afraid to ask!
     16th Jul 2020

    No business likes making redundancies. However, when it becomes necessary to do...

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    3 mins read

    ‘It’s… Rebekah Vardy’s account’
     13th Jul 2020

    The UK tabloids went into overdrive last year following very public falling...

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    4 mins read

    Changes to the Coronavirus Job Retention Scheme – how will the scheme work between June and October 2020?
     1st Jun 2020

    Throughout May we heard a lot of talk about changes to the...

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    3 mins read

    How to calculate your claim for flexibly furloughed employees.
     15th Jun 2020

    The Government has published a “flexible furlough” working example, which sets out...

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    1 min read

    Everything you wanted to know about…Discrimination…but were too afraid to ask!
     18th Jun 2020

    The majority of employers strive to promote equality and diversity in their...

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    3 mins read

    Guide to Buying a Business
     22nd Jun 2020

    Are you looking to buy a business? Nervous about where to start...

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    1 min read

    Employee Ownership Guide
     1st Jul 2020

    MLP Law is a leading law firm specializing in business and employment...

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    1 min read

    CORPORATE INSOLVENCY & GOVERNANCE ACT 2020 (Act)
     2nd Jul 2020

    On 26th June 2020, the Corporate Insolvency and Governance Act 2020 came...

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    2 mins read

    Chancellor’s Summer Statement – a Summary
     9th Jul 2020

    Chancellor of the Exchequer Rishi Sunak has presented his summer statement, announcing...

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    3 mins read

    Pre-nuptial agreements – what if my wedding had been cancelled due to Covid 19?
     16th Sep 2020

    The government gave the go ahead for small Weddings of no more...

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    2 mins read

    Coronavirus Job Retention Scheme Q & A
     24th Mar 2020

    We are frequently being asked questions about the new Coronavirus Job Retention...

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    4 mins read

    What is an NDA and why are they in the news?
     12th Jul 2019

    You may have seen many headlines recently discussing NDAs. The abbreviation stands...

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    1 min read

    BBC taken to tribunal over unequal pay
     7th Nov 2019

    Samira Ahmed, presenter for the BBC, has claimed that the BBC are...

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    1 min read

    Battle of the forms- How to ensure it’s your terms that prevail
     8th Nov 2019

    A “Battle of the forms” arises when two businesses are negotiating the...

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    2 mins read

    Footballer appealing decision to dismiss him over a car crash which left him injured – while his two colleagues were fined.
     11th Nov 2019

    Richard Keogh, a 33-year-old footballer, has had his contract terminated by Derby...

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    2 mins read

    Cricket Australia has introduced maternity leave for the first time – how do your maternity rights compare?
     18th Nov 2019

    Prior to the new maternity policy, which has been three years in...

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    2 mins read

    Labour Party pledges on Employment Law
     21st Nov 2019

    Today the Labour party has published its highly anticipated manifesto in advance...

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    3 mins read

    Pochettino shown the red card by Spurs: the law on unfair dismissal
     22nd Nov 2019

    On Wednesday evening Mauricio Pochettino was sacked as Tottenham’s manager after five...

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    3 mins read

    Political pledges and proposed policies on Employment Law
     3rd Dec 2019

    In one of our previous articles on 21 November, we detailed some...

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    2 mins read

    UK Intellectual Property Rights – Infringement, Defence and Remedy
     21st Oct 2019

    Broadly speaking, IP infringement is a breach of your intellectual property rights...

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    5 mins read

    Warranties and Indemnities in Acquisition Agreements
     14th Oct 2019

    Warranties and indemnities are a means of allocating risk between sellers and...

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    3 mins read

    The clown in the room – The right to be accompanied to meetings in the UK
     17th Sep 2019

    But even if an employee thought it was a good idea to...

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    1 min read

    Is Your Business Brexit Ready? – An Updated Briefing
     16th Jul 2019

    Away from the race to find our next Prime Minister, the key...

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    4 mins read

    GDPR Fines – Should I be worried?
     18th Jul 2019

      Speed Read Summary   Mitigate the risks to you and your...

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    3 mins read

    Intellectual Property Rights
     5th Aug 2019

    What are UK Intellectual Property Rights? UK Intellectual Property Rights (IPRs) can...

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    5 mins read

    Encouraging employee-commitment through long service benefits
     12th Aug 2019

    Employee benefits are non-cash provisions that are of financial value and cost...

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    2 mins read

    Buying or Selling a Business: Shares or Assets?
     9th Sep 2019

      The Fundamental Difference Share Sale or Purchase:  this involves the buyer...

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    3 mins read

    MLP Law’s Brexit Business Checklist
     11th Sep 2019

    Whilst we may be personally feeling bombarded around the discussions, arguments and...

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    2 mins read

    How long should it take to sell my Business?
     12th Dec 2019

    We’ve been involved in a number of transactions recently that, as I’ve...

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    3 mins read

    Judge rules against employee who lost job over transgender tweets
     20th Dec 2019

    Is a belief that there are two biological sexes in humans, and...

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    2 mins read

    Coronavirus: Workers will receive statutory sick pay from first day off work
     4th Mar 2020

    Boris Johnson has today announced that workers in the UK will be...

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    2 mins read

    Entrepreneurs’ Relief following the 2020 Budget
     12th Mar 2020

    Changes to Entrepreneurs’ Relief made by the Chancellor in the Budget could...

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    3 mins read

    Advice for Employers during the Coronavirus Outbreak
     18th Mar 2020

    Coronavirus: New SSP Regs re self-isolation   The Statutory Sick Pay (General)...

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    4 mins read

    Coronavirus: Support for SMEs
     20th Mar 2020

    In the Budget, the Chancellor set out a package of measures aimed...

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    3 mins read

    Government to pay up to 80% of wages in Coronavirus outbreak:
     20th Mar 2020

    Chancellor Rishi Sunak has this evening announced unprecedented economic measures to help...

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    2 mins read

    Preparing for a Share Sale: Company Health Check
     13th Feb 2020

    The sale of a company can be a long and complex process...

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    2 mins read

    BBC loses equal pay claim
     15th Jan 2020

    After months of controversy surrounding the BBC and whispers of gender pay...

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    2 mins read

    Former investment banker wins age discrimination case against Citigroup Inc.
     20th Jan 2020

    Mr Niels Kirk, a former investment banker at Citibank, was unfairly dismissed...

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    2 mins read

    Do I have to offer flexible working?
     5th Feb 2020

    As we continue to progress towards an ever more modern working world,...

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    4 mins read

    To sell or not to sell: Considerations for Business Owners
     6th Feb 2020

    Embarking on a company sale can be a lengthy, complex and expensive...

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    3 mins read

    Shareholders Agreements and Articles of Association: Does my company need them?
     6th Jan 2020

    Articles of Association Articles of Association (Articles) are effectively the rules of...

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    2 mins read

    Company Buyback of Shares
     2nd Jan 2020

    Under a share buyback, a company acquires shares in itself from an...

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    2 mins read

    A GUIDE TO BUSINESS STRUCTURES
     14th Jan 2020

    There are a number of different business structures that can be chosen...

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    4 mins read