Franchising

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According to a recent University of New South Wales study, at least 40 franchisors failed in Australia between 1990 and 2005, affecting 1090 franchisees and their families. Franchisees have no way of knowing in advance that the franchisor is about to fail, and therefore have little or no opportunity to make contingency plans.

Obtaining sound legal advice before committing to a franchise model and/or agreement is therefore a must-do for both franchisors and prospective franchisees.

Our Commercial section has extensive, specialised knowledge of and experience in franchising, acting for both franchisors and franchisees. Our services range from drafting disclosure statements, franchise agreements, providing tax advice on franchises and dispute resolution, including, if necessary, litigation. This area of commercial life is highly regulated, being governed by the Trade Practices Act, which in turn oversees the Franchising Code of Conduct. There are provisions in the Act and the Code that allow franchisees to seek mediation; this can be of considerable benefit to smaller franchisees.

If you are considering creating a franchise, buying a franchise, leaving a franchise or simply need good, solid legal advice on any aspect of franchising, you should call us first.