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Key areas

5 things you need to know about Franchising

  1. Franchising is a popular option for businesses looking to expand and for entrepreneurs looking to run their own business within a supportive structure. Over the last 5 years franchising has gained in popularity, but it’s important that both franchisors and franchisees understand the legal issues involved in the franchising process.
  2. The Franchising Code of Conduct governs franchising in Australia. It’s vital that any prospective franchisor ensures every element of their franchise is compliant with the code of conduct.
  3. The most important document governing a franchise relationship is the franchise agreement. A franchise agreement sets out the legal relationship between the franchisor and franchisee, and must include the franchise history, and set out how the franchise will work. This includes upfront and ongoing payments by the franchisee, and what the franchisee receives for those payments.
  4. A franchise disclosure document must be provided to each prospective franchisee. A disclosure document is designed to give a franchisee an overview of the franchise agreement terms he or she is agreeing to. Every franchisee should have the franchise agreement and the disclosure document reviewed.
  5. Franchises generally involve considerable up-front and ongoing payments, and have a minimum term of several years. Setting up a franchise, or entering into a franchise as a franchisee, is a considerable commitment.  It is important that both sides of the franchise are well-advised by lawyers and accountants who have expertise with franchises.  Specialist advisers know what to look for and advise you on what is standard and acceptable, or what is non-standard and not fair.
Our Franchising Lawyers
Ursula Hogben Key Focus:

Commercial Law, Contract Law, Information Technology And Online Law, Intellectual Property, Capital Raising Law


Bank of America Merrill Lynch, Baker & McKenzie, Hogben Group

Emma Jervis Key Focus:

Employment, Franchises, Business And Commercial, Litigation


Clinch Neville Long, McCabes, Neville & Hourn

Daniel Smith Key Focus:

Intellectual Property, Trademarks, Information Technology/Online Law


Clifford Chance, Sparke Helmore, Wallington Dummer Patent & Trademark Attorneys

See all of our Franchising lawyers See our full range of specialist lawyers