Borrowing an Idea to Run Your Own Business:
The Franchise

Are you considering expanding your business by selling franchise rights or are you an eager entrepreneur considering a move into business life and wondering whether operating a franchise might be for you and want to know more about them? Aviv Lazar & Co are here to accompany you at this exciting time of beginning or continuing on your entrepreneurial journey.

Franchising is the process by which an established business sells licenses to operators to drive business activities using well known trademarked names, their established product ranges and their essential business know-how. This situation results in a mutually beneficial arrangement whereby the franchise brand is able to profit from the licencing fees whereas operators obtain the benefit of the reputation of a more sizeable business selling recognisable products to consumers.

Franchising is becoming significantly more common in Israel across a number of different sectors making not only this area of law ever more important but also the need for franchisers and franchisees to obtain expert counsel before proceeding to agree to the franchise arrangement under consideration.
Aviv Lazar & Co can offer its expertise in this matter to all interested businesspeople. 

 

Whilst franchising is common in many countries of the world, Israel offers a unique set of legal conditions which always need to be clearly understood by those entering the market.

Franchising relationships in Israel are largely governed by the ordinary principles of Israeli contract law. Unlike jurisdictions where there are specific statutory schemes governing franchise relationships this means that very specific attention should be payed to the terms of specific agreement you are entering into.


Key aspects for consideration include:

  • The size and frequency of payment obligations from franchisee to franchiser

  • Restrictions and obligations imposed on a franchisee by the franchiser when using their business model

  • The level of support and direction to be provided by the franchiser to the franchisee at the outset and with ongoing operations.

 

At Aviv Lazar & Co. we can offer answers about all of your franchising related queries, review any proposed franchising documents, explain the implications of any and of course offer our full suite of business consultancy services to assist you in moving forward. Contact us today to arrange a consultation.

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