Many businesses opt for franchising to develop and expand their business. Budding entrepreneurs find franchising an easy way to own a business. The recent spurt in franchising industry has made it important for those involved in the business including franchisees and franchisors to know about the legalities related to franchising.
Legal matters to know in franchising
The Code: In Australia, the FCC (Franchising Code of Conduct) monitors franchising. If you are prospective franchisor, determine that each aspect of your franchise complies with the FCC.
The Agreement: This is the contract or agreement that defines the legal relationship between a franchisee and franchisor. It includes franchise history and the operating mode of the franchise. Include the ongoing and upfront payment by franchise and the amount received by a franchisee for the payments in the agreement.
Disclosure document: This is a must for every franchisee. It gives the franchisee a good overview of all the terms of the agreement before signing it. It is essential for each franchisee to review the agreement and the disclosure document thoroughly.
How we help
Franchises extend for many years and involved huge amounts of payments in the form of ongoing and upfront payments. If you intend to set up your own franchise or enter into one as a franchisee you need to be committed to it fully.
Having legal advice and expert accountants is important as they will help you to identify the acceptable and standard regulations.
As one of the most experienced and expert franchise lawyers in Melbourne we help in different aspects of a franchise including
- Purchase of a franchise: This includes overseeing documents including the agreement, disclosure statement and premise license or lease agreement.
- Pre purchase advice: We offer concise and prompt advice in relation to documentation for the franchise. We offer legal advice to prospective franchisees and help them in the complexities involved. Our advice can help you save an enormous sum in the long run by helping you understand about disclosure statement, franchise agreement, and lease agreement.
- Franchise disputes: If there is a dispute with the franchisor, intervention at the early stage would be beneficial for you. We help with the legal obligations and rights you have in case of misconduct of the franchisor or being misled by the profit potential of the franchise or other similar aspects. We help with dispute resolution in the form of formal or informal mediation. We help you protect your legal rights and convey your position to your franchisor.
- Franchise litigation: It is necessary for litigation to recover losses via court proceedings. If your franchise dispute has progressed to litigation state, we provide you the legal advice. Our experienced commercial litigation lawyers help defend your position and make a strong legal proceeding against your franchisor.
- Breach of Franchise agreement: In case of breach of franchise agreement, we advise you on your legal rights and help negotiate and navigate through the issues successfully.
- Franchise Selling: If you want to quit a franchise and sell it, we assist you comprehensively. We help with the documentation and advice in relation to selling the franchise. We help you prepare sale agreement and deal with the documentation and other requirements so the sale goes through smoothly with successful settlement.
Contact Melbourne Commercial Lawyers
Whether you are a franchisor or franchisee, we have experienced and exceptionally skilled franchise lawyers to help you. Our team of lawyers are experts in franchise relationship, commercial law, property law, employment law and consumer law in Australia. We advice and help you find a solution for your franchising issues effectively.
We are just a call away. Call us now to consult on your franchise situation and to know how we can assist you promptly.