• The franchise brand name needs to be distinctive and appropriate, and provide a benefit to franchisees operating under it, for example by offering a good reputation or established customer awareness. It is important to make sure that the brand name and any associated trade marks have been formally registered with the Intellectual Property Office (www.gov.uk/government/organisations/intellectual-property-office). Potential franchisors may need to seek advice from a professional with expertise in intellectual property law.

• The franchise system is the way the business works. This may be second nature to the business originator, but it needs to be comprehensively broken down and clearly documented so that it can be transferred to and adopted by the franchisee. This will usually be done in the form of an operations manual, supported by training. Documenting the business system can be a complicated and time-consuming process and may be difficult to break down without professional assistance – for example, from a franchise consultant.

• The franchise support is the initial and continuing service the franchisor provides to franchisees to help them operate their franchise outlets. Typical support provided by franchisors to franchisees includes training programmes, administrative services and marketing assistance. The franchisor is also responsible for continued product and service development, quality control and the implementation of new processes. The aim is to ensure that franchisees are as successful as possible, because higher profits from franchise outlets mean a higher level of ongoing royalty payments for the franchisor. It is important for the franchisor to emphasise the support and related benefits that franchisees will receive, and to make the support service vital to them, so that they remain as franchisees once the initial agreement period expires.

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