A franchise is effectively a licence to market a product or service under a common business name with associated trademarks and logos.  For this licence the franchisee pays to the franchisor a fixed sum together with ongoing royalties.

They have become an important entity on the Australian business landscape. They give security for operators entering business and allow you to access the goodwill and cash flow benefits of trading as part of a reputable national franchise.  The prospects of success are generally greater than if you attempt to set up a new business venture on your own.

Franchises are governed by a franchise agreement and the Franchising Code of Conduct. There is a disclosure procedure which must be provided to comply with the Code.  The franchise agreement and the disclosure documents are often very lengthy and detailed documents and, whilst the ability to negotiate changes is limited as the franchisor will insist on the franchise being uniform to all franchisees, you need to be properly advised as to your rights and obligations.  Often a solicitor's certificate will need to be completed acknowledging that you understand the terms of the agreement and have been advised independently as to its content.

We provide advice on the franchise documentation to ensure that you have a thorough understanding of all the obligations and restrictions that will be placed upon you once you enter into the franchise.

Our contacts:
Trevor Kuhle Accredited Specialist