Case Study: Legal support in transitioning to a Single Multi-Site Franchise Agreement

Our client, a franchisee operating multiple UK locations under a globally recognised brand, was managing multiple Franchise Agreements (FAs) across different sites. Each franchise agreement was accompanied by side letters—covering operational provisions. However, the constant duplication and variability across these agreements created inefficiencies in administration, compliance, and overall operational management.

Recognising these challenges, the franchisor decided to introduce a Single Multi-Site Franchise Agreement (SMSFA) that would streamline the franchisee network, unifying existing contractual terms, and simplifying future operations. Our client needed legal expertise to guide them through the transition process, ensuring their interests were preserved under the new agreement.

Challenges

Multiple Franchise Agreements and Side Letters:

The client was managing multiple individual FAs, each with slightly different terms and overlapping provisions. Each location also had its own side letter, which provided additional contractual terms—leading to redundancy and confusion.

Franchisor’s Push for Standardisation:

The franchisor aimed to consolidate the agreements into one single framework that would offer consistency across the franchise network. This presented both opportunities and challenges for franchisees, who were concerned about losing flexibility and specific protections previously outlined in side letters.

The existing agreements and side letters had differences. The client needed to ensure that these aspects were standardised without losing advantageous terms from older agreements.

Our Approach

Initial Review of Existing Agreements:

Conducted a thorough review of the client’s existing franchise agreements and all associated side letters to map out overlapping provisions, financial terms, operational obligations, and renewal conditions.

the SMSFA:

Reviewed the draft MSFA and provided a detailed ‘issues list to our client’, from this we narrowed down the needs and wants to be carried through to the MSFA and updated the agreement, consolidating the previously negotiated terms into one coherent framework, ensuring consistency across the client’s franchise network.

Engaging with the Franchisor:

Represented the client during discussions with the franchisor’s legal and business teams. Our goal was to negotiate favourable terms that would minimize disruption to operations and ensure that the new MSFA offered real benefits without eroding existing franchisee rights.

Outcome

The introduction of the MSFA by the franchisor resulted in the following positive outcomes for our client:

Operational Efficiency: One single agreement now governs all franchise locations, simplifying contract management and reducing administrative overhead.

Stronger Franchisor-Franchisee Relationship: The client’s active engagement in the drafting process allowed for mutual understanding and trust with the franchisor, resulting in a more collaborative and productive franchise relationship moving forward.

Conclusion

This case demonstrates how a major franchisor’s decision to implement a Master Single Franchise Agreement (MSFA) can be beneficial for franchisees in the UK. With expert legal guidance, franchisees can ensure that the transition is handled efficiently, with compliance to UK franchise laws, while safeguarding existing franchisee rights.