Marino Law | Gold Coast Law Firm

Franchising

There are many benefits in franchising a business model or acquiring a franchised business.

Franchisors

If you are desirous of franchising your business, it is vital to ensure that your intellectual property rights are protected and your franchise agreements and disclosure documents are compliant with the Franchising Code of Conduct (the ‘Code’) and the Competition and Consumer Act 2010.

We have comprehensive knowledge through many years of experience across a wide range of industries in franchising law to provide expert advice on the statutory and regulatory requirements to roll out your franchise model and to prepare the contract and disclosure material for franchisees. We can help you with:

  • drafting franchise agreements and franchise disclosure documents and ancillary documents in compliance with the Franchising Code of Conduct;
  • drafting and advising clients on commercial and retail leases or licence arrangements for premises to be sublet or licenced to franchisees within particular territories;
  • facilitating consent requests by Franchisees and documenting any franchise amendment, option or renewal, variation, transfer, assignment, sale of business or surrenders or terminations in connection with same;
  • negotiation with the franchisee’s legal advisors regarding disputes or dispute resolution and litigating any unresolved disputes (if required);
  • Intellectual Property including licensing, branding and social media compliance.

Franchisees

An upside in operating a franchised business for franchisees is the ability to benefit from the goodwill derived from the franchise’s proven business systems, branding and intellectual property and to become involved in a structured business with management and marketing support. The Franchisee does not have to create such structures from scratch or find goods or services, manufacturers or suppliers where they have already been compiled by the Franchisor.

We can assist franchisees by providing advise on the franchise documentation and explaining in plain english what can often been complex and overwhelming legal documentation. There are often provisions drafted into franchise agreements that restrict supplier dealings to approved suppliers only, restrictions on the Franchisee’s right to receive cashflow (which often comes through the system established by the Franchisor and is remitted to (rather than collected by) the Franchisee, resulting in a loss of financial control and the ability for other franchisors to receive similar franchises and potentially encroach upon agreed territory boundaries in certain circumstances. There are also often provisions that need to be carefully scrutinised for when a franchise is sold (including any applicable fees) and post-termination obligations such as confidentiality, non-disclosure and restriction of trade or competition that need careful consideration.

Additionally, we can assist by providing business structuring advice and guidance on setting up a new business or acquiring an existing franchised business.Contact us today on 07 5526 0157 to make an appointment with one of our Gold Coast Lawyers to discuss your commercial and business legal matters.

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