Ready to franchise your business?06 May 2009 Topics: Franchising
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:
- disclosure statements in a form which complies with the Code and at times is stipulated by the Code; and
- 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.