Franchising is a business structure that allows a business to operate under the brand of another business subject to conditions that are set out in the Franchise Agreement. All franchise participants, including the franchisors and the franchisees are regulated by the Australian Competition and Consumer Commission (ACCC), which enforces the Franchising Code of Conduct. Additionally, the parties must also comply with the Competition and Consumer Act 2010 and the applicable State legislation (for example, in New South Wales the applicable State legislation is the FairTrading Act 1987 (NSW)). Therefore, it is highly imperative that you seek legal advice before you Franchise your business, or you buy one.
Amity Legal specialises in the following areas of Franchising services:
Buying a Franchise
A Franchise Agreement is an agreement under which one party (Franchisor) grants the other party (Franchisee) the right to carry on a business often according to a marketing plan or operating system developed and established by the Franchisor. The Agreement sets out the clauses for matters such as (including but not limited to) payment of franchise fees, marketing fees, royalties, outlining the roles and responsibilities of the Franchisor and Franchisee, performance criteria, territory, breach, and termination.
As a Franchisee, it is imperative you understand your rights and obligations under a Franchise Agreement especially because more than often these agreements have termination clauses in favour of the Franchisor. Whilst the Franchising Code of Conduct sets outs the steps the Franchisor must follow to terminate a franchise, turning a blind eye to such clauses and other important clauses may not stop you from being legitimately terminated.
Contact Amity Legal if you are planning to buy a Franchise and require services to review a Franchise Agreement.
Get StartedFranchising your Business
A Franchise Agreement is an agreement under which one party (Franchisor) grants the other party (Franchisee) the right to carry on a business often according to a marketing plan or operating system developed and established by the Franchisor. The Agreement sets out the clauses for matters such as (including but not limited to) payment of franchise fees, marketing fees, royalties, outlining the roles and responsibilities of the Franchisor and Franchisee, performance criteria, territory, breach, and termination.
A Franchisors have extensive obligations under the Franchising Code of Conduct including record-keeping and continues disclosure obligations. It is crucial that your Franchise Agreement is well- drafted. Contact Amity Legal if you require drafting a Franchise Agreement or further information on it.
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