Franchising in the UK
Economy
The UK has the world’s sixth largest economy with a GDP of
USD 2,674.0 billion.
Legislation
There is no specific franchise law in the UK.
Franchise Market
Franchising is a strong and growing part of
the UK economy. There are more than 700 franchise systems
active in the UK comprising a total of over 30,000 units.
Among the UK’s top 20 franchisors are both
leading international brands such as McDonald's and Burger King and
domestic brands such as Body Shop.
Franchise Legislation
The UK is a common law country. It generally respects the
commercial agreement agreed by contracting parties.
- There is no franchise disclosure law in the UK
and there is no general duty of good faith
- There is no franchise registration
- Sub-franchising within the UK is restricted by the Trading
Schemes Act 1996
Conclusion
The UK is a very franchise friendly jurisdiction. In order
to avoid allegations of misrepresentation under the
Misrepresentation Act 1967 it is advisable to provide potential
franchisees with an appropriately customised disclosure document
would also be appropriate.
For more information please contact Mark Abell.