In Russel & Partners, we provide assistance in every legal aspect including franchising to assist the demand, requirements and record a wide range of agreements catered to the needs of each client. To ensure the best interest of the client’s business, we must ensure that the trade secret is not jeopardized in the first place rather than avenues for post-breach remedies. For that purpose, the concern of protecting trade secrets must come from the initial stage of drafting the agreements, where a perceptive legal mind has to be applied from the side of the franchisors to fully benefit from the existing laws of Bangladesh.

Franchising is a particular type of business using another firm’s successful business module. This is generally a legally binding contract between a franchisor to franchisee. Bangladeshi companies are continuing to show strong interest in opening U.S. based franchises. There are no regulations barring franchise operations and growing access to global supply chains or as a model to expand a business of the franchisor by granting license to franchisees. 

Franchising businesses are well-known to us on a regular basis such as- KFC, Pizza Hut, Domino’s Pizza, A & W. To successfully establish a franchise, franchisors require to work with an experienced franchise lawyer to establish a solid blueprint for franchising. There, we know a franchisor’s main negativity may arise from the concern of their trade secrets getting found out.

The following individuals may want to hire a franchising lawyer:

• Franchisors with an established business
• Franchisors looking to start a franchise model
• Franchisees purchasing their first franchise business
• Franchisees looking to expand who has a project relating to franchising

Laws governing Franchising:

The World Trade Organization (WTO) has propounded on the definitions of trade secrets and ways to protect them.

Through “The Contract Act 1872’ franchising business are based upon, in general. In these contracts, a franchisor can assign their trademark and goodwill using the provisions of chapter 5 of the Trademarks Act, 2009.

Legal proceeding:

Following these steps below franchise institutes, such as

    Step 1: Establish a limited liability corporation (LLC) or corporation.

    Step 2: Research the current economic client and franchising opportunities.

    Step 3: Select a franchise that aligns with your abilities and objectives.

    Step 4: Develop a business plan for your franchise to present to financiers.

    Step 5: Apply for financial support from a bank, venture capitalist, or another investor.

    Step 6: Meet the terms and conditions of the franchise agreement.

    Step 7: Begin conducting business as a franchisee.

What franchisee Lawyers do?

From the secret internal facts of any company, it can be inferred that a potential disclosure or leak of trade secrets without the company’s control or consent can lead to the fall of their business. So, an alternative way to protect trade secrets is to have an elaborate plan of control which requires to be comprehensively laid down on the contract with the franchisee, if breached creating legal liabilities. Franchise lawyers will protect your rights and answer your questions, regardless of which side you are on. They have the requisite experience and insight to ensure that both parties facilitate a fair and lawful deal.

Also perform this following –

•     Provide legal advice to clients
•     Understand state and federal franchise law
•     Ensure that both parties comply with franchise laws and regulations
•     Prepare and maintain the franchise agreement
•     Representing the client in hearings or court
•     Negotiating franchise deals based on the facts
•     Engage in matters of alternative dispute resolution
•     Ensure clients comply with the terms of the franchise agreement
•     Stay abreast of any federal franchise rule that impacts the business
•     Understand new directives as provided by franchise regulators
•     Offer clients guidance on franchise laws by state requirements
•     Efficient lawyers can point out the loopholes in existing contracts and find out   avenues for amending the contract
•    The confidential information should be defined, and then clauses of exclusion from access must be provided.

In essence, franchise lawyers comply with laws and regulations that apply to their specific situation. They can also help you avoid making legal mistakes that can come back to haunt you in the future. It is vital to consult with a franchise lawyer when starting a business.