Sale and Purchase of a Franchise

Franchising Law

We have working knowledge of all areas of the law relevant to franchising, including:

  • The Franchising Code of Conduct;
  • Competition and Consumer Act 2010 including the Australian Consumer Law;
  • Competition Law;
  • Intellectual Property Law; and

Cost-Effective and Timely

We offer franchisor clients cost-effective rates and timely provision of advice and documentation including:

  • Drafting Franchise Agreements and Disclosure Documents;
  • Registering, protecting and licensing intellectual property;
  • Advising on financial business structures and operations; and
  • Mediation and dispute resolution.

Fixed-Fee Legal Advice

We have reviewed and advised on a number of the major franchise systems in Australia.

  • We offer fixed-fee legal advice, with a 72-hour turnaround. Our advice is contained in a comprehensive document on all aspects of the franchise system.
  • We act for clients on resales of franchise businesses.
  • We act for clients in the resolution of franchising disputes through mediation and, where necessary, the Federal Court.

Important Questions

Important questions to ask yourself if you are considering acquiring a franchise business include:

  1. Are you suited to working within a franchise system? Are you an independent person or a team player?  How will you deal with the risks and demands of being a business owner in a franchise system?
  2. Do you know what information you should get from the franchisor so as you can properly assess the franchise business?
  3. Are you allowed to speak to other franchisees before you purchase the franchise?
  4. Can you withdraw from the purchase of the business after you have reviewed the documentation and if so, will it cost you anything?
  5. Do you know what the appropriate qualifications you need to carry on the franchise business (if any)?
  6. Will the franchisor provide ongoing training and support? If so, how much will it cost?
  7. If the franchise business sells product, what are your obligations in purchasing that product from the franchisor only have to purchase all supplies from the franchisor?
  8. What are your options and backup plan in the event that the franchise business does not do well? Is there a right to terminate the franchise agreement?
  9. Do you need the franchisor’s consent to sell the franchise business?  Can the franchisor refuse to give consent?
  10. After the franchise agreement ends, are you still able to operate a similar business at the same premises using a different tradename with the same employees?
Joseph Grassi & Associates

Contact us to arrange a consultation regarding the purchase or sale of a franchise

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