Franchising

We understand that issues affecting franchisors and franchisees are broad and diverse. That’s why we offer our franchising clients the services of a multidisciplinary team of legal professionals.

Business lawyers from our commercial, property and litigation, and dispute resolution teams ensure our clients’ businesses are structured to achieve success.

Our clients in the franchising industry sector include fast food retailers, food and beverage retailers, clothing retailers, car rental agencies, mortgage brokers, convenience stores, gymnasiums, real estate agencies and motor vehicle dealerships, both in Brisbane and throughout Australia.

The main franchising services provided by our firm in relation to business law include:

• franchise agreements and disclosure documents
• sales and purchases of franchise businesses
• property advice and lease documents, including retail shop leases
• mediation and dispute resolution
• commercial advice on, and preparation of, business contracts such as terms of trade and supply agreements
• tax, duty and GST
• intellectual property advice and protection strategies
• workplace relations and safety
• compliance including competition and consumer and workplace health and safety compliance
• structuring including asset protection, entity establishment and business succession.

Franchising Code of Conduct

Buying a franchise can be a profitable and fulfilling venture, but there are certain things franchisees need to know about their rights and obligations under the most recent Franchising Code of Conduct.

On 1 January 2015, the old Franchising Code was repealed and replaced with a new Franchising Code of Conduct.

The new code:

• introduces an obligation under the Code for parties to act in good faith in their dealings with one another
• introduces financial penalties and infringement notices for serious breaches of the Code
• requires franchisors to provide prospective franchisees with a short information sheet outlining the risks and rewards of franchising
• requires franchisors to provide greater transparency in the use of and accounting for money used for marketing and advertising and to set up a separate marketing fund for marketing and advertising fees
• requires additional disclosure about the ability of the franchisor and a franchisee to sell online
• prohibits franchisors from imposing significant capital expenditure except in limited circumstances.

For more information on franchising issues, we have collated a range of useful resources for Australian franchisors and franchisees.

• Franchise Council of Australia
• ACCC
• Office of Fair Trading – Queensland
• The Office of the Franchising Mediation Adviser
• Queensland Civil and Administrative Tribunal

For legal advice on franchising matters, call (07) 3231 2444.