The use of the franchise business structure is becoming increasingly common. A franchise has the advantage of an established brand, with known products and/or services and procedures. The franchise as a whole may have increased buying power and the entire franchise has the benefit of shared advertising. Entering into a franchise structure can, however, be quite complex.
Our commercial lawyers are experienced in acting for both franchisors and franchisees in this complex area of law. Please call us on
(02) 9521 2222 if you have any questions concerning a franchise matter. You can also
send your enquiry online now and one of our commercial solicitors will contact you shortly.
Franchisors
Prospective franchisors must formulate an appropriate business model and implement systems regarding education/training of franchisees, tenure of franchise sites (whether to be controlled by the franchisee or franchisor) and advertising and supply of products to the franchisees.
It is essential that prospective franchisors have the correct set of documents prepared for issuing to prospective franchisees. Franchisor’s actions are highly regulated and proper compliance with the Franchising Code of Conduct and other relevant laws are essential. Such compliance includes the provision of proper written disclosure to prospective franchisees and entry into complying franchise agreements and supplementary contracts (including, for example, leases and subleases or licences to occupy premises).
Prime Lawyers has experience in acting on behalf of the franchisor. If you are contemplating the creation of a franchise structure, or if you wish to review your current franchise system, Prime Lawyers can assist. Call us on (02) 9521 2222.
Franchisees
Entering into a franchise is a complicated matter for a small business owner. Location, staffing, cashflow and finance are just some of the many issues a prospective franchisee must address. In addition, the prospective franchisee is then provided with detailed, complex franchise documents by the franchisor; documents which must be properly considered and executed before the franchised business can commence.
Prime Lawyers can assist you in dealing with those documents, freeing you to organise the many other matters that require your attention when starting a new business. We can advise you on the process involved in becoming a franchisee.
We can also advise you on disclosure documents, franchise agreements, leases, personal guarantees and the many other documents that may be involved in your prospective franchise. Our franchise lawyers will explain the effect of those documents to you and negotiate with the franchisor (or lessor) if necessary in order to seek terms in your favour.
If you are a franchisee or franchisor seeking legal advice, please feel free to contact our law firm on
(02) 9521 2222. You can also
send your enquiry online now and we will contact you shortly.