Franchising a business is fast becoming one of the most dynamic and growing business sectors within the Australian economy. It is becoming commonly recognised that franchises are a recognised way for expanding or developing a business or joining and establishing a business.
Joining a franchise can have many rewards for a prospective franchisee including:
- Small business independence with big business network;
- Higher success rate than conventional start-ups;
- Buying into a franchise is more cost-effective than stating up a conventional business;
- Good way to obtain business experience – franchisors usually provide training.
If you are a small or medium business owner, franchising your business can be an effective way to expand your business and reputation. Franchising gives many advantages for a prospective franchisor including:
- Earn profits without high-capital risk;
- Can expand business by utilising franchisee’s financial and employee resources;
- Each outlet is independently owned – each franchisee is motivated to be successful;
- Franchisor not required to be focused on daily operations of business.
However, if you are considering joining a franchise or franchising your business, there are important legal considerations to consider including:
- Use of Intellectual Property and Trade Secrets;
- Obligations under the Franchising Code of Conduct;
- Confidentiality Agreements;
- Use of Business and Brand Name;
- And many more!
It is important to obtain legal advice prior to entering into a franchise agreement because it is important for you to understand your rights and obligations under the agreement especially since, many franchise agreements contain strict conditions.
Our commercial lawyers can assist both franchisees and franchisors and prospective franchisors and franchisees. They can help you understand your legal rights and obligations under a franchise agreement or can prepare all the documentation necessary to franchise your business successfully.
We can often provide our services for a fixed–fee charge which gives you certainty regarding your legal costs.
Located at our convenient Lilydale and Berwick offices, our commercial lawyers can help you wherever you are located.
If you have any inquiries relating to franchises, please do not hesitate to contact our office on (03) 8658-0040 for a free, initial, no-obligation chat.