COMMERCIAL AGENCY & FRANCHISE
What is the difference between a commercial agency relationship and a franchise?
In a franchise relationship, the franchisee contracts on its own behalf and in its own name but will often pay a percentage or proportion of its turnover to the franchisor. This percentage or proportion is usually in exchange for the use of the franchisor’s name, goodwill or products, so is quite different to a commercial agency relationship
In a franchise relationship, the franchisee contracts on its own behalf and in its own name but will often pay a percentage or proportion of its turnover to the franchisor. This percentage or proportion is usually in exchange for the use of the franchisor’s name, goodwill or products, so is quite different to a commercial agency relationship
- Business
- Operator
- Franchise
Solo Agency
A sole agency is when the principal is not able to appoint any other commercial agents to act on its behalf in a specified territory (where the sole agent is authorized to act) but the principal is able to seek customers and to negotiate sales directly for itself.
exclusive agency
An exclusive agency is when the agent has the exclusive right to represent the principal in a territory and the principal is prohibited from trying to seek customers and to negotiate sales directly for itself.
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non-exclusive agency
A non-exclusive agency is when the principal is free to appoint other commercial agents in the same territory and also, seek customers and sales/transactions itself.
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