Franchising of a business system for the marketing of goods and/or services is a widely used business format. It is a proven way of building a successful business quickly, by drawing on the experience and support of the franchisor. It is different from distribution, manufacturing and agency contracts. A franchised business must be conducted in accordance with the Franchising Code of Conduct.

Practice area overview

Franchising gives rise to a number of issues for the franchisor and the franchisee concerning:

  • The establishment of a franchise system.
  • The conduct of a franchise system.
  • The renewal of a franchise.
  • The termination of a franchisee.
  • The terms of the franchise agreement.
  • The application of the mandatory Franchising Code of Conduct.
  • Mediation under the Franchising Code.

Key factors in any franchise include:

  • Well documented and supported business systems.
  • Practical and realistic franchise terms.
  • Sound franchisee selection and training systems.
  • Careful and consistent compliance with the Franchising Code of Conduct.

 

What we do:

Our services include the review and writing of the franchising contracts and advice concerning the Franchising Code of Conduct.

For a franchisor we can:

  • Advise you on the legal steps a franchisor must take to establish a franchise system become a franchisor.
  • Write the required franchise documentation – franchise agreement, franchise disclosure document and associated documents (restraints etc).
  • Review and advise you on your other franchise documents (e.g. advertisements and operating manuals) to ensure compliance with applicable laws.
  • Assist you in your negotiations with prospective and existing franchisees.
  • Assist you in franchise mediation and litigation.
  • Advise on application of industrial relations legislation.

For a franchisee we can:

  • Advise you on the steps you should take in preparation for becoming a franchisee.
  • Give you advice on the franchise agreement, franchise disclosure document and ancillary documents and changes that you may need to them.
  • Assist you in your negotiations with the franchisor both before and during the course of your franchise.

Related Practice Areas


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We think outside the square

We help our clients comply with changing legal requirements and seek to ‘think outside the square’ to provide our clients with solution oriented legal services, with attention to detail.