Franchising

Franchising

Some of Australia’s most well-known businesses are franchises, and Beck Legal has had the opportunity to advise a significant number of successful franchises across Australia. Franchising is a complex and compliance focussed area of the law. There are serious consequences for franchisors who get it wrong, including franchisees being entitled to terminate their agreements and being entitled to refunds of all fees paid.

It is important that the Franchising Code of Conduct is followed by franchisors to the tee, in order to avoid any adverse issues in the future. Beck Legal’s commercial team stays on top of the changes to the disclosure and ongoing requirements so that you have the certainty you need to conduct a successful franchise. We also advise potential franchisees who are looking at entering into a franchise.

Our Franchisor Services

Our franchisor services go further that simply preparing the franchise documents. We advise our franchisors on the entire lifecycle of their franchises, and equip them with the knowledge, documents and procedures necessary to comply with the franchising regulations. Our services include:

  • Initial Advice – Advice on whether your proposed structure is a licence arrangement or meets the definition of a franchise;
  • Franchise Agreement, Disclosure Document and Associated Documents – Preparation of the full suite of franchise documents, including the Information Statement, Prior Representations Deed, Certificates and Acknowledgements. We will provide you with suggested terms based on what we have seen work in your industry, and will ensure that we reflect the commercial terms you want to include in a way that is enforceable and makes sense;
  • Timeline and Instructions – Providing you with a timeline and instructions document, so you know what to provide to your prospective franchisees and when, to ensure that you comply with the requirements under the Franchising Code of Conduct;
  • Renewals – Preparation of any renewal documents, including updating the Franchise Agreement and Disclosure Document;
  • Assignments/Transfers – If a franchisee wishes to sell their franchise, we can advise you on the assignment process and prepare the required assignment documents;
  • Termination – Advice on your rights, and your franchisees rights, in relation to the termination of a franchise agreement;
  • Disputes – Our litigation team can advise you on the best way to handle any disputes with franchisees.

Our Franchisee Services

If you are a potential franchisee looking at entering into a franchise, we can review the documents for you and let you know if anything is out of the ordinary. We have prepared and reviewed hundreds of franchise documents, and will be able to quickly let you know if something is standard or is unusual and could cost you down the line. We will highlight any onerous obligations you have, as well as the expenses you need to pay for.

If you wish to assign or terminate your franchise agreement, we can prepare or review the necessary documents, and give you advice on your rights. Our litigation team can advise you on the best way to handle any disputes with your franchisor, including if the franchisor rejects the potential purchaser of your franchise.

Why Beck Legal?

Ensuring you stay on the right side of the franchising laws in Australia is paramount to the ongoing success of your franchise and Beck Legal can provide you with clear and easy to understand advice on how to comply.

If you would like more information about franchising, get in touch today.