Recently, I had the opportunity to attend the Knights Franchising Roundtable, where industry experts shared invaluable insights into franchise trends, brand protection, dispute resolution, data protection, regulatory compliance, and employment law.
For franchisors, staying ahead of these changes is essential to maintaining sustainable, compliant, and successful networks. Here are some of the most important takeaways from the event.
Franchising trends – Transparency is key
Recent case law, including Hunters v Brybond and Winkworth and Goble, along with high-profile media cases, have put franchising under scrutiny. Franchisors are increasingly being held accountable for decisions that impact franchisees—both in the court of public opinion and through legal action.
To mitigate risk and protect their brand reputation, franchisors should:
- Ensure decision-making processes are documented and transparent
- Apply policies consistently across the network
- Be able to justify business decisions with clear evidence
This level of accountability and fairness will not only safeguard against legal disputes but also foster trust within franchise networks.
Brand protection – Trademarks under the spotlight
The Supreme Court’s decision in SkyKick v Sky TV serves as a cautionary tale for franchisors looking to protect their trademarks. The ruling highlights that trade mark registrations must be backed by genuine intent to use—broad registrations covering unrelated goods or services may be deemed invalid.
Franchisors should:
- Regularly review their trademark classifications
- Ensure they align with actual business use or a documented expansion plan
- Be prepared to defend trademarks against bad faith challenges
Litigation & reputation management – Being dispute-ready
Disputes are an unfortunate reality in business, but preparation is key. To protect their network, franchisors should:
- Follow the franchise agreement to the letter – inconsistency can lead to legal challenges
- Be cautious with internal communications – WhatsApp messages and emails can be used in legal proceedings
- Maintain clear policies on external communications to avoid defamatory statements
- Seek legal advice when dealing with defamation claims or disputes
Managing brand reputation effectively is just as important as avoiding litigation—it all starts with clear communication, transparency, and consistency.
Employment law – Major changes ahead
The Employment Rights Bill will introduce significant changes in 2025 and 2026, impacting franchised businesses that rely on flexible workforces. Key updates include:
- Increased hiring costs – higher national minimum wage and employer National Insurance contributions
- New protections for workers – guaranteed hours, shift cancellation compensation, and day 1 unfair dismissal rights
- Stronger anti-harassment regulations – franchisors must take “all reasonable steps” to prevent harassment in the workplace
Franchised businesses with casual or shift-based workforces must prepare now to stay compliant.
Data protection & AI – Navigating new challenges
With AI playing an increasing role in business, franchise networks must ensure compliance with UK GDPR when using AI-powered tools. Key considerations include:
- Ensuring fairness, accuracy, and bias mitigation
- Defining roles of data controllers and processors
- Transparency with franchisees, customers, employees and any other data subjects on AI use
- Conducting Data Protection Impact Assessments before implementing AI-driven systems
Meanwhile, the Data Use and Access Bill will update UK data protection laws, bringing new rules on cookie consents, automated decision-making, and international transfers. Keeping up with these changes is essential for franchise compliance.
Regulatory & compliance – Digital markets and subscription models
The Digital Markets, Competition and Consumers Act 2024 grants new powers to regulate businesses with significant digital market influence. Franchisors using digital platforms—particularly those with e-commerce or subscription-based services (e.g. gym memberships or fitness & class-based concepts) —should ensure they remain compliant with emerging regulations.
Key areas of focus:
- Fair pricing, advertising, and consumer interactions
- Stronger consumer protections for subscription-based services
- Compliance with digital market competition rules
In conclusion, the Knights Franchising Roundtable reinforced the fact that franchisors must remain agile, transparent, and legally informed to navigate evolving regulations and industry challenges. Whether it’s employment law, data protection, or reputation management, proactive compliance is key to long-term success.
The franchise industry is constantly shifting, but by staying informed and taking a strategic approach, franchisors can continue to thrive.
