Expert franchise lawyers providing advice and assistance tailored to your unique franchising needs.
Franchising is a business model where parties enter into a franchise agreement outlining the terms. Typically, a franchisor controls the name, brand and business system that the franchisee is entering into an agreement to use. During this process, you should seek the advice from franchise lawyers to ensure you understand exactly what you’re agreeing to.
The main franchising legal services we provide are:
- drafting and reviewing franchise agreements and disclosure documents
- sales and purchases of franchise business
- intellectual property advice
- advice on retail and commercial leases
- taxation and duty advice
- employment law advice
- business structuring advice, and
- franchising disputes.
Franchising in Australia is regulated by the Franchising Code of Conduct. This code is a mandatory industry code that regulates the conduct of franchisors and franchisees. The Code includes disclosure requirements, good faith obligations, dispute resolution mechanisms, cooling-off periods and procedures for ending a franchise agreement. Our experienced solicitors at Butlers Business Lawyer’s can advise franchisors and franchisees on their rights and obligations pursuant to the Code.
Buying or selling a franchise
Purchasers of a new or existing franchise will be required to enter into a franchising agreement with the franchisor. It is imperative that prospective franchisees seek independent legal advice before entering into a franchise agreement. Franchisees wishing to sell their business will need to ensure that they abide by contractual restrictions in the franchise agreement.
On the one hand the purchaser of a franchised business is buying a business with an established brand and ‘system’. However, the franchisee’s operation of the business is governed by a franchise agreement which could subject them to significant costs.
In addition to the franchise agreement, the franchisor is also required to provide a potential franchisee with a copy of the disclosure document. The disclosure document contains information about the franchise business, and is designed to ensure that the franchisee makes a reasonably informed decision about whether to purchase the franchise. It is important that before entering the franchise agreement that prospective franchisees seek legal advice to understand the disclosure documentation, franchise agreement and the potential risk and benefits of purchasing the franchise.
Our solicitors provide expert legal advice and assistance for franchisees. We can help streamline the sale process, and negotiate on behalf of our clients.