Business Law Essay Level 4 & 5 Small Gym Business


Franchise set up business model is one f the most relevant issues which could be used by Brenda and Jerrica in case of opening of its new cafe in international market and getting proper success. In this report, Brenda and Jerrica want to start Cafe Royale business in various country, so its professionals need to be considered some legal norms such as the Equalities Act 2010 and The employment tight Act 1996 in case of furnishing appropriate employment in the cafe and its employees have some rights by which they can protect their authorities at the workplace. Moreover, Cafe Royale organisational professionals must utilisation of employers rights and employment insurance in order to giving proper facilities to their employees in proper ways.

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P.1. Overview of business model

Set up a modern franchise business: This is one of the best model for starting up a new business in international market and with the assistance of this approach, each business can grow in the market more. So in case of Brenda and Jerrica, both wants to enhances their cafe in international market sufficiently. So they are thinking about renaming the new business to be called Cafe Royale, franchise set up is one of the best approach by which Brenda and Jerrica would be able to expand their business functions at international level and run their business in various countries. Varied of legal implications are required to involved in order to opening a franchise in foreign country (Aldrighi and Postali, 2010). In this process, Brenda and Jerrica both persons needs to find out the party who can hold the liability to run the business in the nation in more sufficient manner. They need to give the all responsibility and let them handle the burden of finding new location and leasing land in country. Numerous phases are required to make development of a cafe franchise in new country and most important factors are, they need to considering various legal factors in case of establishing a new franchise in the business.

Legal requirements: In case of establishing a case franchise in new country, both parties' franchisor and franchisee must have good relationship in order to critical success of both parties in the market. There are some legal requirements for setting up a franchise in new location in another country as below (Brownlie and Goodwin-Gill, eds., 2010):

The disclosure document: This is also known as FDD, the major aim of the FDD is to providing prospective franchisees with information about the franchisor, both the parties need to sign on this agreement paper in case of making informed decision related to the organisation effectively. In FDD documentation, They need to sign on some essential agreements at the time of setting up a franchisee in the market. This is most appropriate option which must take by franchisor in terms of gaining information decision about investing in Cafe Royale company.

The franchise agreement: This is more specific alternative than FDD about reviewing relationship between franchisee and franchisor at the workplace. This is a legal agreement which must be included some terms in order to making proper agreements between them (Budhwar and Varma, eds., 2010).

  • The franchise system, such a use of Cafe Royale company's trademark and products
  • territory
  • Rights and obligation of the parties: standard, procedure
  • terms of the franchise
  • Payments made by the franchisee to the franchisor
  • Training, assistance and advertising etc.

The franchise agreement is a legal and written documentation which defines about the relationship between franchisee and franchisor and their purpose of establishing business in the country. The franchise set up process must be in relevant manner by its legal process in the country. So efficient development could be gain.

Strengths and Weaknesses: Some strength and weaknesses has been seen in case of establishing setting up franchisee in the industry in international market.

  • It has been seen that, in case of establishing franchisee in another country, they have huge amount of money in case of starting up a new business in the country.
  • A new small businesses may be enough money, so that they have to bear large amount of money for initial investment of the business in the new market (Hart, 2017).
  • Cafe Royale could increase the growth and productivity of the business in international market.

P.2. Recommendations

  • As per setting up Cafe Royale in another country, they are required to completion of some strategic implication in form of starting a new franchisee in the market.
  • AS per comply contact low, franchiser must need to consideration of all legal implications of the country in case of necessity of establishing a new business.
  • A proper documentation regarding to agreement must be signed by both the parties at the workplace in respect to making proper information gathering about setting up a new business in the market and it protects their rights to doing business in the nation (Lefort, 2010).
  • Its professionals need to considering all legal norms and contact law as per provision of company law in the nation and they need to follow the company legal system as per its requirement to making agreements in both the parties.
  • It has been recommended that, both persons need to hire skilled and experienced person in their new franchisee of Cafe Royale business, in order to sufficient run of the business in the market properly.
  • Based on the needs of its new clients in international market, its professionals require identifying their demands in the new market and as per their new customers requirements in the market, they must provide appropriate cafe products in the market.

P.3. Employing staff for the first time

In terms of setting up a new franchisee of Cafe Royale business, its HRM department need to hire new employees for its new location in various countries. They need more skilled and experienced employees for its new franchisee set up at various locations in the nations. In case of providing proper opportunities to their employees to working with Cafe Royale brand, they need to hire its new employees in the business in case of proper development in such areas by which they can run franchisee in the market properly. Employees of the company needed to be given equal opportunities at the workplace for hiring process in the company. According to The Equality Act, 2010, its HRM department need to be considered the legal regulation of this act, so that fairly duty could be done by its professionals while completion of employing new staff at the workplace. In order to employing new staff, in such way its professionals require to implementation of equality Act all norms and regulation at workplace while hiring process is being done in the company (Llewellyn, 2012). The act defines about some essential consideration must be taken by Cafe Royale professionals while hiring their new staffs in the market sufficiently. Mostly, it has been seen that, the equality act beings some values to the organisation, through which, its HRM professionals need to ensure that, all candidates in the new staff hiring process of the company is being fairly tearing and should be given equal opportunities at the workplace. All these legislative provisions must be considered by them in the corporation in proper way.

HM revenue and customs: This is a non-mininstrial department of the company which defines about the UK government responsibility for the collection of taxes and payment of state support and the administration of other regulatory regime involving the national minimum wages in the country. The department in the country is responsible for collecting direct taxes such as income tax, corporation tax and indirect tax in the nation. So in case of opening a new franchise in another country, Cafe Royale business need to follow its instruction as per its requirement in covering the taxes in corporation sector in the nation (MacKinnon, 2017). Cafe Royale business professionals must need to ensure that, they are fulfilling all the corporate taxes in the country proper, With the assistance of this function, the firm's top management can run their business function in the industry. Apart from it, as per the taxation policies of the government, they have to fulfilling various taxes as per they are enforced to fill them on its necessity in the country. Franchisee set up company need to make attention to considering all taxation policies of the country properly.

National minimum wages: As per the legal system of the country, national minimum wages defines about each person in the company must be give appropriate wages as per government norms in this sector. So in case of new establishment of franchisee of Cafe Royale business, its professionals require to considering all norms as per national minimum wages provides in the provision (Ward, 2011). It could be said that, its professionals need to make attention on furnishing of the minimum pay per hour mist workers under the age of 25 are entailed to by law in the country effectively. With the assistance of this legislative norm, Cafe Royale employees can get appropriate wages as per government rules in the nation.

The legal rights to work in the UK: In case of working in the UK, Cafe Royale employees need to apply for country's visa in which they want to work with this organisation. Its all new staff who is sending for working its franchisee, its oversee employees and workers requirement to have proper visa in case of living and working in the UK (Mann and Roberts, 2011). Beside from it, afterg getting proper visa in the nation, its workforce need to obtain working permit from country's government properly so they can get appropriate opportunity to working in the franchisee.

Contract of employment: This is a legal agreement between employees and employer in the industry and this is based on the employment relationship in the industry. Contact of employment is most necessary part of the company, by which Cafe Royale would be able to give proper employment to their employees (Nissenbaum, 2011). The contact of employment defines that, Cafe Royale must have relevant rule of working and proper schedule and timing of working in the industry sufficiently. If they are hiring new employees for its new franchise in another country, they must consider all relevant consideration of the contact law in their outlets appropriately.

DBS check: This is a form of criminal record bureau and it defines that, the cafe HRM professionals needed to be considered all relevant areas of employment and process by which, before giving employment in the company, they need to check out the all information about to selected candidates at the workplace in order to identify that, selected candidates are suitable for job in the cafe or not. Cafe Royale top administration could check out employees criminal record at online basis and as per its information in the industry, they can hire and fire their employees at the workplace. This is most necessary action which must be taken by its top management at the workplace.

Vicarious liabilities to the employer to employee: Various liabilities are presented here which must be initiated by Cafe Royale employer in order to provision of all relevant facilities and freedom to their employees at the workplace in proper way. Establishment of good and positive relationship between employees and employees could raise the productivity and profitability of the business in the industry (Obama, 2010). As per employment right act, 1996, all employees have right to utilise proper facilities of employees in the company perfectly. Employer has liability to furnish all appropriate services and resources at the workplace by which they can do their work in Job.

Employment insurance: This is also necessary terms which is furnishing by government of the UK to country's employees in proper manner. According to employment insurance provision, each individual employees who as recently lost their job can get appropriate financial assistance for sustain further. This program must be utilised by Cafe Royale employees in case of lost their job from the cafe.

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From the above investigation, it is concluded that, franchise set up is one of the most appropriate business model by which Brenda and Jerrica both individual person could enhance their business at international level. Beside from it, the study concludes about some legislative provision such as the equalities act 2010 and the employment right act 1996, both provides appropriate guidance to the company in order to gaining proper functioning of Cafe Royale all business activities and the UK legislation provides proper rights and facilities to their employees in the country in relevant manner which must be considered by HRM professionals of the company.


  • Aldrighi, D. M. and Postali, F. A., 2010. Business groups in Brazil. In The Oxford handbook of business groups.
  • Brownlie, I. and Goodwin-Gill, G. S. eds., 2010. Brownlie's documents on human rights. Oxford University Press.
  • Budhwar, P. S. and Varma, A. eds., 2010. Doing business in India. Routledge.
  • Hart, H. L. A., 2017. Positivism and the Separation of Law and Morals. In Law and Morality (pp. 63-99). Routledge.
  • Lefort, F., 2010. Business groups in Chile. In The Oxford handbook of business groups.
  • Llewellyn, K. N., 2012. The bramble bush: On our law and its study. Quid Pro Books.
  • MacKinnon, F. B., 2017. Contingent Fees for Legal Services: Professional Economics and Responsibilities. Routledge.
  • Mann, R. A. and Roberts, B. S., 2011. Smith and Roberson’s business law. Cengage Learning.
  • Nissenbaum, H., 2011. A contextual approach to privacy online. Daedalus. 140. 4. pp. 32-48.
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