Established Franchisors

Laws governing the franchising industry are continuously changing (and becoming more stringent). Both the Franchising Code of Conduct (Code) and the Australian Consumer Law (ACL) are subject to regular reviews (for example, in regard to unfair contract term laws and penalties for breaches). Franchisors must therefore remain on the forefront of such changes to these laws to ensure that they are operating their franchise system in a legally compliant manner.

In particular, the Code contains many rigid timeframes which must be adhered to when granting a Franchise Agreement to a franchisee and in the overall ongoing operation of a franchise system. Franchisors can be exposed to hefty fines/penalties for failing to comply with these obligations.

Having an experienced legal advisor is therefore essential for all franchisors. We can assist franchisors as follows:

1. Reviewing and updating existing suites of template documents to ensure they remain legally compliant in line with changes to laws (for example, as part of the mandatory annual update requirements of the Code and to reflect any operational changes in the franchise system) including Franchise Application Forms (with confidentiality provisions), Disclosure Documents, Franchise Agreements, Prior Representation Deeds and any other ancillary documents.
2. Assisting with annually updating the franchisor’s online profile on the Franchise Disclosure Register.
3. Issuing documents to franchisees and otherwise handling the process from start-to-finish, for new franchise grants, renewals or resales of existing franchised businesses.
4. Providing advice on:
   • day-to-day operational issues;
   • regulatory compliance and competition and consumer law issues, including conducting seminars to inform a franchisor and its staff about obligations under the Code and ACL, and assisting with implementing compliance programs in the franchisor’s head-office;
   • setting up and maintaining marketing/advertising funds;
   • master franchise and regional management structures.
5. Handling buy-backs of businesses from franchisees.
6. For franchisors who hold a franchisee’s premises Lease, reviewing and negotiating the Lease with the landlord, ensuring compliance with any retail disclosure obligations, and drafting Subleases, Occupancy Licences and/or Step In Deeds.
7. Preparing, reviewing, advising on and negotiating commercial Agreements with suppliers.
8. Restructuring of intellectual property within the franchise system, including registration of new trade marks.
9. Issuing mandatory end-of-term reminder or non-renewal notices to franchisees.
10. Assisting with the sale and purchase of existing franchise systems, and business succession.
11. Issuing breach notices to franchisees and otherwise assisting with dispute resolution. See our Franchise Disputes page for more information.