franchising law

Franchising lawyers

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Dundas Lawyers® advises Franchisors and Franchisees on all aspects of “Franchising Law” and compliance with the Franchising Code of Conduct (Code) as enforced by the Australian Competition and Consumer and Commission (ACCC).  The activities of Franchisors and Franchisees are regulated pursuant to the Competition and Consumer Act 2010 (Cth) which has superseded the Trade Practices Act 1974 (Cth).

Our franchising law services

Entity selection and intellectual property (IP) protection

Prior to the establishment of a Franchise System, we take the time to review the structure and form of the intellectual property which is being licensed and advise on the most appropriate ways to protect and exploit the commercial value of the IP.  We work diligently to ensure that the business requirements are taken into consideration in the Franchise Agreement in addition to the mandatory legal elements.

Creation of franchise systems

Each Franchisor, Master Franchisee and Franchisee must have a Franchise Agreement. The term Franchise Agreement is defined in section 4 of the Code. We therefore draft and settle:

  • the Franchise Agreement;
  • the Disclosure Document as the case requires;
  • any ancillary documents as required by the Code or the specific needs of the Franchise System; and
  • update Franchise Agreements and manage the Franchisor’s disclosure obligations as required by the Code.

Franchisee development

In order to best exploit a Franchisor’s IP, we assist to grow the Franchisor’s network, by:

  • issuing Short or Long form disclosure documents to potential Franchises (as required) and manage the Franchisors document processing obligations ensuring that the statutory time limits are met;
  • conduct negotiations and draft amendments to the Franchise documents as appropriate;
  • advise on issues arising from the application of the Franchisor’s business to the Code;
  • advise on issues associated with dispute resolution, and if appropriate attend mediation;
  • where appropriate, negotiate and settle leases over real property; and
  • manage requests to transfer or novate Franchise Agreements for Franchisees.

Requirements for the Franchisor

There are certain distinct elements that a Franchise Agreement must possess as defined in section 4 of the Code to be a Franchise. These include:

  • the Franchisor granting the Franchisee the right to carry on the business of providing goods or services under a “system” or marketing plan determined or largely controlled by the Franchisor;
  • the right to use the Franchisors brand which is manifested in one or more registered trademarks;
  • the franchisees being required to pay a fee or fees of various types to the Franchisor before and during the conduct of the business which may include:
    • an initial capital investment fee;
    • a payment for goods or services;
    • a fee based on a percentage of gross or net income; and
    • a training fee or training school fee.
  • the Franchise Agreement being for a limited term and provision is made for the extension of the term.

Franchise Agreements must include all of the above elements.

Disclaimer
This page contains general commentary only about franchising law.  You should not rely on the commentary as legal advice.  Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.


Why choose Dundas Lawyers® as your franchise lawyer?

Having exerted Blood Sweat and Years® since April 2010 we are the team you want on your side for the long term to act as the ‘bodyguard’ for your business to advise on franchising law.  Some of the reasons client’s choose Dundas Lawyers® include:

  • our Uncommon business acumen;
  • our Uncommon expertise in transactional, compliance and litigious matters;
  • our Uncommon expertise forensic case preparation;
  • our Uncommon customer focus;
  • the fact that we don’t just know law, we know business!
  • how we leverage our Uncommon Nous® to provide client centric solutions.

Need a franchise lawyer for your business?

For a confidential, no obligation initial telephone call to find out how we can help your business gain an uncommon advantage in franchising law please phone our team on either 1300 386 529 or 07 3221 0013

Complete the form below and we will respond to your enquiry within one (1) business day from the moment you press Submit.

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Recent insights about franchising Law

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Recent Federal Court decisions regarding franchising law

Sorry, there are no recent cases on file.

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