Franchise Agreements

Every franchise agreement is different and has been drafted by the Franchisor, usually to protect the Franchisor in the event that the relationship between the Franchisee and Franchisor breaks down in some shape or form.

There is a raft of documents that the Franchisor will require you to enter into, including:
• Disclosure Document
• Franchise Agreement
• Restraint of Trade Deed
• Lease or Licence
• Sale of Business

These documents need to be explained in detail and should conform with the Competition and Consumer (Industry Codes – Franchising) Regulation 2014 (“the Franchising Code”). Ordinarily, a franchising lawyer or solicitor will negotiate changes on the franchisee’s behalf. In some cases, you may need to be represented by a lawyer or solicitor if a breach notice and/or termination notice is issued.

Our franchise lawyers, who are accredited specialists in business law, already have the necessary experience and knowledge to read through and completely understand Franchise Agreements, then provide the necessary legal opinion or advice.

The Franchising Code – Franchise Agreement or resolving a Dispute

There is Commonwealth Legislation – the Competition and Consumer (Industry Codes – Franchising) Regulation 2014 (“the Franchising Code”) which is designed to ensure that Franchisees have minimum rights, including:

• What information must be contained in a Disclosure Document;
• What steps a Franchisor must do before entering into a Franchise Agreement, including cooling off rights and disclosing material facts;
• Process for dispute resolution, and
• Termination

The regulatory body for ensuring compliance is the Australian Competition and Consumer Commission (ACCC).

Read more about Franchising: