Franchising and Creator Brands: Build franchise concepts and promote franchise systems

Franchising: what matters

A franchise system leaves the use of brand, know-how and concept to partners for fees. For Creators with a strong brand, this is a way to scale business ideas without running any location themselves. Legally, you need a protected brand, documented know-how in the franchise manual, a balanced franchise contract and a comprehensive pre-contractual clarification of the partners.

Influencers are also increasingly promoting franchise and partner programs, such as business start-ups. Liability risks are threatened here if earnings promises are unrealistic. We advise Creator as a franchisor, franchisee and as an advertising partner.

Typical situations in which we help

• You want to assign your concept to partners as a franchise or license.
• You want to become a franchisee of a creator concept yourself.
• They promote a franchise or partner program.
• A franchise partner demands compensation for incorrect information.
• You want to end or rebuild a franchise system.

Legal basis at a glance

Pre-contractual Enlightenment

Before the conclusion of the contract, the franchisor must inform interested parties truthfully and completely about essential circumstances, in particular about profitability and risks. Incorrect information can lead to damages and reversal.

Franchise contract

It regulates fees, area, brand and know-how license, obligations, advertising, term, non-competition clauses and the end of the contract. Depending on the design, there may be a right of withdrawal for start-ups.

Antitrust law

Price specifications and certain restrictions are problematic under antitrust law. The Vertical Group Exemption Ordinance sets limits.

Advertising for franchise systems

Profit promises and success stories must be true and verifiable. The advertising creator can also be liable.

That’s how we go

1. 1

   Initial assessment

   You briefly describe the facts to us and send documents such as a contract, cease-and-desist letter or screenshots. We will tell you promptly where you stand and what the next steps will cost.

2. 2

   Secure evidence and deadlines

   We document posts, stories and chat history in court and record all deadlines. Content disappears quickly, especially with social media.

3. 3

   Set strategy

   Together we decide whether negotiation, defense, cease-and-desist letter or contract drafting is the right way. It is always about your reach and your business relationships.

4. 4

   Implement and enforce

   We negotiate, formulate, answer and, if necessary, go to court, also in an urgent procedure. You will regularly be informed of what is happening.

Regarding the costs: Before every step we tell you what it costs. Depending on the case, we charge a flat-rate fee or by hourly rate according to the Lawyers’ Remuneration Act (RVG). If the opponent is obliged to reimburse, for example in the case of a justified cease-and-desist letter, we will claim these costs for you. More on this on our page Fee.

Common mistakes to avoid

• Franchise assigned without a registered trademark.
• Give unrealistic profitability information.
• Agree on prices.
• Take on the promise of earnings in advertising unchecked.