Ready to franchise your business?

Have you been considering the options for your business and want to know what would be involved in the process of franchising?

Please refer to our article “What is a Franchise” if you would like more information on what constitutes a franchise.

Things you need to consider

Several issues you may need to consider before franchising your business system are:

Complying with the Franchising Code of Conduct (the Code) prescribed under the Trade Practices Act 1974 (Cth) which includes providing franchisees with:
1. disclosure statements in a form which complies with the Code and at times is stipulated by the Code; and
2. conditions and dispute resolution procedures within the franchise agreement.
  If a person enters into a franchise arrangement with another person without complying with the Code, the person may be the subject of enforcement proceedings by ACCC, have a fine imposed on them, have the agreement terminated and/or be ordered to refund any fees paid to the payee.

Legal advice on how you will protect your intellectual property and intangible qualities which add value to your business (business goodwill).
Accounting advice on the financial arrangements between you and franchisees.
Legal advice on setting up a marketing fund that that complies with the Code.

If you would like assistance in relation to any franchising matters, please contact a member of our team on 3231 2444.