Many successful businesses look to franchising as a way to expand. Franchising grants other individuals the right to own “franchised business”, but at the same time, gives the franchisor strict control over the operation of that business to maintain brand consistency. The franchisor will generally charge the franchisee an upfront initial franchise fee and collect ongoing royalties or franchise fees for the duration of the franchise.
We can assist businesses who are considering franchising their business model as follows:
- Working with a business to determine whether franchising is the best decision for their intended business model, or whether a licensing, distribution or sub-contracting model would be more appropriate.
- Guiding the prospective franchisor through the step-by-step establishment process, including:
- business structuring, for example, operating through a company and/or trust. See our Business Structuring page for more details;
- structuring of intellectual property, for example, registering trade marks (both in Australia and internationally) and Intellectual Property Licence Agreements;
- advising on the rights and obligations of both the franchisor and its franchisees under the Franchising Code of Conduct and other relevant laws (such as the Australian Consumer Law);
- drafting a suite of legally compliant documents for the franchise system, including Franchise Application Forms (with confidentiality provisions), Disclosure Documents, Franchise Agreements, Prior Representation Deeds, and any other ancillary documents;
- assisting with setting up a franchisor’s online profile on the Franchise Disclosure Register.
- Drafting Employment/Contractor Agreements for the franchisor’s staff.
- Preparing, reviewing, advising on and negotiating commercial Agreements with suppliers.
See our page for Established Franchisors for how we can help a franchisor during the operation of a franchise system once it is established.
