Franchise Lawyers Sydney

Buying a franchise business is probably the largest financial decision you will ever make. At Newhouse & Arnold Solicitors we have an experienced team of franchise lawyers who really understand how franchise businesses work. Our franchise lawyers are also accredited specialists in business law by the Law Society of NSW.

What make us different from other lawyers?

Most law firms believe they can assist franchisees, however our team of franchise lawyers have either owned and run a franchise business in Sydney or have been extensively involved in franchise litigation (see our blog for some recent decisions).

This means that each franchise lawyer can advise you on what questions you need to ask the franchisor, what things to look out for in the franchise agreements, how to treat the franchisor’s “profit models” and how to point you in the right direction before you make the decision to buy a franchise.

We do not charge for the first meeting and will offer you a fixed fee service, so there are no hourly rates which only rewards slow lawyers! A fixed fee service allows you to ask as many questions as you like throughout the process. After the first meeting we will give you a list of things to do so you can understand how your franchise business actually works, possible and real risks and give you advice around the best structure for you to buy your franchise.
Of course, we will also work closely with your accountant and financial/business advisors to ensure that you understand the franchise business that you are buying.

If you are considering buying a franchise or have concerns about your franchise business, contact a franchise lawyer at Newhouse & Arnold on 02 9922 1100.

Have you been given a “preferred” solicitor by the agent?

Your agent may refer you to a “preferred” solicitor, explaining to you that this lawyer has acted for other franchisees. We would advise you to be cautious in engaging a “preferred” solicitor, as there is a question as to their independence – are they working for you or the agent, or both? If they give advice outlining the risks of buying the franchise, will they get more referrals from the agent? Does the “preferred” solicitor look at each franchise agreement afresh? Has the “preferred” solicitor ever dealt with a breach notice or termination notice? What franchise litigation have they been involved in? Are they willing to negotiate and ensure that the elements of the Franchising Code is adhered to in your franchise agreement? Most importantly, why is the agent giving you a “preferred” solicitor, when they work for the franchisor?

It is worth an hour of your time, at no cost, to meet with an experienced franchise lawyer to discuss the franchise business you are about to buy.

How does a franchise lawyer help you?

Franchising is a form of licence by which the owner (Franchisor) of a product or service obtains distribution through affiliated dealers (Franchisees) and the holder of this right usually is given exclusive access over a defined geographical area. Newhouse & Arnold Solicitors’ franchise lawyers can provide assistance for a range of legal matters related to Franchise Law, including advice on:

  • – Franchise disclosure documents, leases and franchise agreements.
  • – The Competition and Consumer (Industry Codes – Franchising) Regulation 2014 or “Franchising Code”
  • – Breach notices issued under franchise agreements
  • – Litigation claims under the Competition and Consumer Act
  • – Royalties, levies and other payments
  • – Commercial leases and licences

Newhouse & Arnold has been involved in common franchising disputes, including:

  • -Misrepresentations by franchisors as to earnings, profit and loss, disclosure documents
  • – Unconscionable conduct in the lead up to signing the franchise agreement
  • – Breaches Notices under franchise agreement
  • – Failure by a franchisor to comply with disclosure requirements under the Trade Practices (Industry Codes – Franchising) Regulations 1998
  • – Terminations under franchise agreements
  • – Selling “unauthorised products”
  • – Franchisor “stepping-in” powers
  • – Sale of Franchise to third parties, with onerous additional contractual requirements placed on an incoming purchaser

Read more about Franchising: