Garden House Solicitors: David Hughes

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Wednesday, 28 August 2013

Five Key Questions About Forming A New Company

Article by David Hughes

How do I form a company?

The quickest, easiest way to do it is to buy one ready made from a company formation agent. This is called an ‘off-the-shelf company. You can fill in your details on their website and they will form a brand new company just for you.

What is a company formation agent?

It is the name for a business that does nothing else but form new companies. There are hundreds of them on the web. Just google for ‘company formation agent’.

Can I trust a company formation agent?

Yes. It is their day job to form new companies so they know what they are doing. The company formation process isn’t particularly difficult, but it is time consuming and a hassle for those who are not familiar with it.

How quickly will my new company be ready?

It can be formed in a day. The company formation agents are linked to Companies House via specialist software, so they can usually form a new company within a few hours.

How to Sell a Company

Article by David Hughes

If you are a business owner you will know that building your company is hard work. Selling your business often seems like a distant dream, many years in the future - if only you could get there.

However, the years pass and the sale of the company seems to get no closer. Does that sound familiar? For many company owners it is an uncomfortable reality. If building the company is hard, selling it can feel like the ultimate goal that is forever out of reach.

It is a good idea to do a legal health check on your company each year, which will look at whether all your client contracts and compliance paperwork is in place. It will review your employee contracts and staff handbook and it will look at your online presence and whether your activities online are fully compliant with relevant laws. The aim is to make sure that your business is continually ready to be sold as it grows, because you never know when the right time to sell will come along.

The truth is that no company ever reaches a ‘perfect moment’ at which point it is sold. Selling a company, as with most things in life, is a compromise. It also takes hard work and serious planning. How do you value a company? What if your co-owners don’t want to sell? Who would want to buy your company? Is the company value too reliant on your employees?

The good news is that you can increase both the value of your company and the likelihood that it will be sold by understanding the key factors that a buyer will look for.

Garden House Solicitors offer their clients the legal advice to ensure a successful business sale. To book your free consultation contact our business law advisor, David Hughes at David@gardenhousesolicitors.co.uk or by telephone on 01992 422128

www.gardenhousesolicitors.co.uk

Tel: 01992 422 128

Email: info@gardenhousesolicitors.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

Top 3 Pitfalls in Franchise Agreements

More than 1 in 2 potential franchisees sign up to the standard franchise agreement of the brand they decide to go into business with without taking legal advice.


Article by David Hughes

The most common question of those that do take advice is to know what the pitfalls of the agreement are.

The top 3 pitfalls of franchise agreements, (which are a surprise for those who don’t take legal advice!), are:

1. It’s your full time job. Most franchise agreements contain a clause stating that you will have to devote your ‘full time and attention’ to the franchise and are not allowed to be involved in any other business while you are part of the franchise. This means that you will be in breach of the agreement if you are continuing to work part-time in another business (even a non-competing one) while you build up your franchise business.

2. You can’t choose your suppliers. A franchise agreement will state that you have to get your supplies from the franchisor at their list prices – so even if you can find the same equipment or products at a cheaper price elsewhere you do not have the discretion to buy from them.

3. No right to walk away. Almost all reputed franchises are for a fixed 5 year term with the option to renew at the end. This means you are tied in for 5 years! Usually the only way out is to sell the franchise. If you stop trading and walk away early, then you will likely be liable to the franchisor for lost royalty fees for the unexpired part of your franchise term.

Garden House Solicitors offers a franchise agreement review. Taking advice on the contents of a franchise agreement starts from £450 + VAT. It is a relatively quick process and can give you the peace of mind that you are not signing up to years of headaches later on.

If you are considering entering into a franchise agreement or you are already involved in a franchise and need assistance you can telephone me on 01992 422128 or email David@gardenhousesolicitors.co.uk