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:
- 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?
- Do you know what information you should get from the franchisor so as you can properly assess the franchise business?
- Are you allowed to speak to other franchisees before you purchase the franchise?
- Can you withdraw from the purchase of the business after you have reviewed the documentation and if so, will it cost you anything?
- Do you know what the appropriate qualifications you need to carry on the franchise business (if any)?
- Will the franchisor provide ongoing training and support? If so, how much will it cost?
- 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?
- 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?
- Do you need the franchisor’s consent to sell the franchise business? Can the franchisor refuse to give consent?
- 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?
