Franchise Agreementswith expert lawyers

A franchise is a business structure where the owner of a business, known as the franchisor, licenses another party, known as the franchisee, to use the business’s trade name and operating structure. The franchisee then opens the same business in another location and pays the franchisor a fee, usually monthly.

This can be a great way to expand a business’s reach and maximise profits. However, franchises are regulated by the Franchising Code of Conduct, so it’s important to understand your legal obligations as either a franchisor or franchisee.

A Franchise Agreement is one of the key documents between a franchisor and franchisee. It is a contract that sets out the terms on which one party, the franchisor, gives another party, the franchisee, the right to carry on a business according to the system or marketing plan determined by the franchisor.

The relationship between the franchisor and franchisee is largely governed by the Franchise Agreement, together with the Franchising Code of Conduct, so it is an important document to refer to if a dispute arises.

A Franchise Agreement generally covers four main things:

1. The key terms of the business
2. The franchisee’s obligations
3. The franchisor’s obligations
4. Procedures relevant to the purchaser or incoming franchisee

It usually includes clauses about franchise fees, including royalties, marketing fees and utility fees, as well as reporting, marketing, training and performance criteria. The agreement should also set out any requirements under the Franchising Code, such as relevant fees or disclosure documents. It’s important that your agreement reflects the requirements under the Code, as these are legal obligations.

It should also cover the franchisee’s rights in relation to selling the franchise to a third party. You can read more about Franchise Agreements here.

Our fixed-fee Franchise Agreement packages start at $500 + GST. As part of this package, we’ll draft a Franchise Agreement to suit your business requirements. You’ll also receive phone consultations with an expert Sprintlaw lawyer and a complimentary amendment to the final draft we provide.

It’s important to get advice from an experienced lawyer who can guide you through the process, check whether your Franchise Agreement includes the relevant provisions, and help ensure your business activities comply with the Code. Sprintlaw has an experienced team of lawyers who have worked with a wide range of franchise businesses across Australia. Whether you’re a franchisee or franchisor, we can help at any stage of your legal journey. Because we operate fully online, it’s easy to access and communicate with a lawyer quickly and at times that suit you.