Sales Agreements & Franchising
These can be made direct to your new customers, under a supply agreement, with no intermediary to pay or to take a cut. The main disadvantage is that you have to do the hard work of breaking into the new market yourself. Where the new market is abroad, this may also involve establishing your company (whether deliberately or accidentally) in the relevant country, which may have serious tax and other legal implications.
You can employ an agent to take your product into new markets. You will gain access to their established contacts, and can keep a tight control over the sale of your products, including setting the end price.
We can help you set up commercial agency arrangements to suit the way that you wish to trade, and have substantial experience of agency within the EU.
We also advise agents, and are experienced at helping them get the best protection in dealings with their principal.
- Craig Malarkey
Distributors / Re-sellers
An alternative route into new markets is to sell your goods to well-established players in that marketplace, who can act as your re-seller to push your product out to an established network of customers, and help your brand become established.
Often this will involve an exclusive arrangement within a certain geographic area, but care has to be taken not to fall foul of competition law requirements. We regularly advise parties on both sides of this type of arrangement.
If you have a successful business model, a very lucrative way of exploiting it is to set up a franchise chain. Franchisees pay an initial one-off fee to use your business model, system of work, branding, and to gain access to your customer base. They are usually also committed to paying over a percentage of their takings, and to purchasing supplies that are key to the business from your nominated suppliers (in whom you may have an interest)
We have experience of setting up and advising franchise chains in the UK and EU, and can assist you with an integrated approach to make sure that all legal aspects are on the best footing prior to launch.
If you are thinking of taking up a franchise, you should think carefully about where you are investing your money. We can help you make an informed decision about your future, and help you negotiate to obtain a fairer deal.