The Franchising industry can seem a little daunting if new to it. Although some terminology can differ from contract to contract, there are a few terms that any potential franchisee seeking to join a property franchising company should familiarise themselves with.
Below are some explanations of some key terms that Winkworth use in the sales (SFA) and lettings (LFA) franchise agreements (FA).
Franchisor – The parent company that permits individuals to use their name, brand and trademark for a set period. In this case, Winkworth.
Franchisee – You the individual, together with your permitted assigns and successors, seeking to use the name and systems of the franchisor to run your business under.
Intellectual property rights – Means any patents, rights to interventions, copyright and related rights, trade names, trademarks and domain names.
Manual – Relates to sales and lettings manuals provided by the franchisor that all offices should abide by in the day to day running of the business.
Service Company – Means the potential franchisees individual company name officially registered with companies house. Note that individuals cannot use any words in their service company name used in the franchisors trade name (definition below).
Term – Means the length of time that the FA will run to. This varies from company to company.
Territory – Winkworth offices operate in exclusive territories to protect each offices’ business needs. Individual offices are given an exclusive territory negotiated between the potential franchisee and New Franchising team. It is worth noting that no territory will ever be granted to more than one office.
Trade name – Relates to the franchisors trading name, in this case “Winkworth” and any other such trade name that the franchisor develops during the term.
These are just a few words and expressions used under the clause named Definitions and Interpretations in the Winkworth FA’s. The New Franchising team will run through any aspects of the FA with all potential franchisees prior to coming on board.
If you would like to learn more about joining Winkworth, please contact the team.