Borrowing an Idea to Run Your Own Business:
The Franchise

Are you considering expanding your business by selling franchise rights? Aviv Lazar&Co is here to guide you through this exciting time in your entrepreneurial journey.

Franchising is the process by which an established business sells licenses to operators using well known trademarked names, their established product ranges, and their essential business expertise. The result is a mutually beneficial arrangement whereby the franchise brand is able to profit from licensing fees while operators sell recognizable products and therefore benefit from the reputation of a larger business.

Franchising is becoming significantly more common in Israel across a number of sectors: this area of law is critical, as is the growing need for franchisers and franchisees to obtain expert counsel before proceeding with a potential franchise arrangement. Aviv Lazar&Co offers its expertise and services to all interested businesspeople. 

 

Though franchising is common in many countries around the world, Israel offers a unique set of legal conditions which must be clearly understood by those entering the market.

Franchising relationships in Israel are largely governed by the ordinary principles of Israeli contract law. Unlike in jurisdictions where there are specific statutory schemes governing franchise relationships, very close attention must be paid to the terms of the specific Agreement you are entering into.

Key Aspects for Consideration

• 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 will do our best to answer all your franchising related questions, review any proposed franchising documents, and offer our full suite of business consultancy services to assist you in moving forward. Feel free to contact us today to arrange a consultation.