Supporting your business every step of the way.
Franchising involves a person (the franchisor) agreeing to allow another person (franchisee) to operate an existing business system that is controlled by the franchisor, in return for payment of a fee by the franchisee. The business must be operating and associated with a trademark or symbol.
The franchisor will generally provide ongoing guidance, systems and assistance throughout the operation of the agreement in return for the payment of periodic fees by the franchisee. Our experience in acting for both franchisors and franchisees means that you receive the benefit of our perspectives on both sides of the franchise relationship.
Services for franchisors
Our team has worked with our franchisor clients to prepare suites of template franchise disclosure documents and franchising agreements across a range of industries, including real estate, retail, food and beverage supply and goods rental.
We are then able to advise as required as new franchisees are found, or there are legislation updates affecting terms or disclosure obligations.
Often, issues will arise in the course of the franchise relationship, and we can assist franchisors with:
- Enforcing breaches of the franchise agreement by the franchisee, including acting in court proceedings
- Assisting with dispute resolution and mediation to resolve disputes between the parties
- Defending claims of unconscionable conduct or other breaches of the Franchising Code of Conduct
- Dealing with requests for assignment by the franchisee and documenting the assignment
- Advising on rights following termination.
Services for franchisees
Buying a franchise is different from buying a conventional business. You will be entering into a long term arrangement with a franchisor to operate a developed method of doing business.
Unlike a conventional business, you are only acquiring the rights to operate the business system developed by the franchisor and do not have total freedom over how the business is operated or eventually sold. You may be left with nothing at the end of the franchise term.
For this reason, it is important that you are clear about the terms of the franchise agreement, and your rights and obligations under the agreement. We can assist franchisees in understanding and negotiating the terms of the franchise agreement, as well as all other legal aspects of the purchase such as business structuring and finance.
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