According to the British Franchise Association, the franchise agreement should comply with the National law and this code of ethics..

“The agreement shall reflect the interests of the members of the franchised network in protecting the franchisor’s industrial and intellectual property rights and in maintaining the common identity and reputation of the franchised network. All agreements and all contractual arrangements in connection with the franchise relationship should be written in or translated by a sworn translator into the official language of the country the individual franchisee is established in, and signed agreements shall be given immediately to the individual franchisee.”

The essential minimum terms of the agreement shall be the following:

  • the rights granted to the franchisor
  • the rights granted to the individual franchisee
  • the goods/services to be provided to the individual franchisee
  • the obligations of the franchisor
  • the obligations of the individual franchisee
  • the duration of the agreement which should be long enough to allow individual franchisees to amortize their initial investments specific to the franchise
  • the basis for any renewal of the agreement
  • the terms upon which the individual franchisee may sell or transfer the franchised business and the franchisors possible pre-emption rights in this respect
  • provisions relevant to the use by the individual franchisee or the franchisors distinctive signs, trade name, trade mark, service mark, store sign, logo or any other identification
  • the franchisors right to adapt the franchise system to new or changed methods
  • provisions for termination of the agreement
  • provisions for surrendering promptly upon termination of the franchise agreement any tangible and intangible property to the franchsor or new owner