The key to successful franchising is ensuring that the legal agreements underpinning the businesses relationship provide a balanced and fair framework for managing how franchisor and franchisee interact. After all, in most cases, you are entering into a long-term commercial arrangement so it is smart to start on both a positive and collaborative note.
At TNS Lawyers, we have experience acting for both franchisors and franchisees.
Our franchise lawyers in Melbourne have extensive experience working in both small and large businesses, as well as franchises. This means we take a commercial and pragmatic approach to advising our clients. While ensuring you are compliant under the Franchising Code of Conduct, they cut through the complexity, keep the legalese to a minimum, and focus on using the law to help you build a strong business relationship.
We have experience advising franchising clients operating in the following industries:
Talk to us about franchising your business. We can assist with:
If you are, you will be presented with a large amount of paperwork containing a series of complex legal agreements. You should always seek independent legal advice before signing on the dotted line.
We can help with:
In each case, we will break up the agreement and explain the key terms to you in clear and plain language so you understand the precise nature of the business relationship you are entering.
If you find yourself involved in a dispute, you need to resolve it as quickly and cost-effectively as possible. We are experienced in dispute resolution as set out in the Code. As skilled litigators, we are also well equipped to take any matter to court if necessary.
Most importantly, we understand that being involved in a dispute doesn’t necessarily mean that you want to end the commercial relationship. While we will always act as your advocates, we also understand that it is important for us to handle any dispute both sensitively and diplomatically.
How does a franchise agreement work?
A franchise agreement grants another party the right to operate a business supplying or distributing goods or services under a predetermined system by the franchisor. It draws upon the intellectual property and know-how of the franchisor to run (usually) under its brand. The agreement typically includes information about the agreement's duration, the obligations of each party, payable fees, etc.
How do you start a franchise business?
When starting a business, some important things you need to consider are the structure, legal documentation, and fees. Franchise relationships in Australia are regulated by the Code so we encourage getting advice from a lawyer to ensure your and your franchise's compliance from start to end.
Are franchises considered small businesses?
Yes, a franchise can be considered a small business depending on its structure, consolidated revenue, the value of the consolidated gross assets, and the company and entities it controls.
According to the Australian Securities and Investments Commission (ASIC) and the Corporations Act 2001, a small business can be structured as a sole trade, company, joint venture, or partnership.
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Ever wonder what it’s like being able to “phone a friend” and that friend happens to be your lawyer? We make sure you have a good experience with us every step of the way.