Franchise with Contractual Importance

Aslı Hanım önfirst of all, can we get to know you? How long have you been in the franchise business?

Hello. I have been practicing as a lawyer since 2006. After graduating from the Faculty of Law in Izmir, I completed my master's degree in the field of "Contract Law" (University of Paris XI). My master's thesis is on the subject of "Dönma;on from Contracts". I also did another master's degree in Economic Law at Galatasaray University. In addition, after becoming a mediator in 2013, I received specialized training in areas such as Commercial Law and Labor Law. The franchise area, on the other hand, has been included in our area of interest and study due to the fact that our law firm provides services to foreign clients in English and French foreign languages as well as Türkçe’e’ and because the nature of the franchise area is a contract in the first place. For more than 10 years, we have been serving both Turkish investors and foreigners who want to invest in Turkey in this field.
 
In this field, what are the advantages for those who want to start their own business by agreeing with the brand or who want to move into new business areas, in other words, "Franchisees"
The person or company that will receive the franchise will use a brand that has already been established and proven. The franchisor has technical knowledge and experience. It shares this knowledge and experience with the franchisee. The fact that the franchisee will have the opportunity to benefit from the know-how of a brand that has already been tried and proven to work is an advantage in terms of minimizing the risks in its business life. Because having an already functioning system and experience in this field is very different from establishing an enterprise from scratch. The franchisee, who will have an already established and functioning business model, will also have access to a ready-made potential customer portfolio. Brand awareness provides access to these potential customers.

Who want to start their own business by agreeing with the brand or who want to move into new business areas, “ Franchisees ” what should they pay attention to?
I do not recommend franchisees to get legal assistance in every step they will take and that they will be under the obligation from the very beginning. Because the franchise relationship is a contractual relationship that puts both parties under rights and obligations. One of the most important ways to prevent subsequent damage is to establish a well-established, well-negotiated contractual relationship that meets the expectations of both parties and reduces the risk. A well-written contract that meets the rights and expectations and is sensitive about the risks is essential in the professional activity of the franchisee and the franchisor. It would not be a mistake if I say that the spirit and foundation of the franchise relationship is built on the contract. At the beginning of the issues that I want franchisees to pay attention to, in parallel with the reflection of market instability, they should make a meticulous study on the capital element in the first place. 
Although there are many issues that franchisees should take into account with öngörü, in order not to interrupt their entrepreneurship  , perhaps the most important thing about market conditions is that they should try to be öngörülü I would encourage them to make an effort to be themselves and to study as much as possible about the difficulties experienced due to the collection of receivables, operating expenses, public expenses, and the priority debts to be incurred in the near term. 

What are the risks for those who are looking for entrepreneurs for their brand, in other words, "franchisees"? What should be considered? The franchisor entrusts the franchisee with its most valuable professional asset, its brand. Therefore, while transferring his knowledge and experience in this field to the franchisee through the trainings he will provide to the franchisee, it is determined that this is a bilateral assurance and win-win. Because the know-how and experience expressed in the term Know-How is as valuable as gold for the franchisee as it is for the franchisor who delivers his brand to safe hands and protects his reputation from damage through experience transfer. In short, the franchisor should not forget the fact that if it fails to transfer the necessary experience and knowledge, it will face the risk of damage to its reputation.

As a practitioner in the sector, how would you evaluate the franchise system in terms of economic growth and development? The franchise system is a marketing and distribution method that helps well-known companies that can standardize in the provision of products or services to grow and increase their profits without investing capital, and it is a very positive system that contributes economically to both national and international growth. I should especially mention that this fair, founded by Mr. Özhan Erem, of which I was a guest, has a very positive contribution to the country's economy, taking into account this challenging period we are going through. Entrepreneurship contributes positively to our country and the economy, of course, by taking risks and spreading this relationship on the basis of the solid sözation I mentioned.