Franchising is a rapidly growing business model across Australia. Business owners across various industries including fashion, food, real estate and professional services have chosen to grow their businesses through franchising. Franchising, at its core, involves a franchisor assigning the right to a franchisee to market and distribute goods or services under their brand. Our franchise team can assist in all areas of franchise law, including:

  • drafting the master franchise agreement, and disclosure document (and annexures including deeds of guarantee);
  • filing applications to register any business names or logos as a trade marks;
  • preparing licence and distribution arrangements;
  • drafting the operations manual;
  • preparing document packs for each new franchisee; and
  • advising on your obligations under the Franchising Code of Conduct.

Our franchise lawyers are recognised experts in the franchising space. We have assisted local businesses to expand their operations nationwide, as well as international franchisors looking to launch in Australia.

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5 Things You Need to Know About Franchising your Business

  • 1Many successful business owners decide to franchise their business to grow quickly, with motivated franchisees leading expansion. For the right business, franchising can be a game changer, building scale quickly in a way that would not be possible simply with organic internal growth.
  • 2The key to building a successful franchise is recruiting great franchisees. Your franchisees are the face of your business, building your brand and delivering your product or service to your customers. Recruit well and develop your first franchisees into brand ambassadors and your franchise is likely to be successful.
  • 3Franchising is governed by the Franchising Code of Conduct, which means your legal structure must be set up by a lawyer with a detailed knowledge of the Code. Your franchise documents must comply with the Code requirements, so that your business is based on a firm legal foundation.
  • 4The two key documents when franchising your business are the franchise agreement and the disclosure document. Your lawyer will draft both of these, with your input. You will also need to create a detailed operations manual for the franchise, which sets out the specific details of how the franchise is operated day to day, for example exactly how products are made and provided to the consumer.
  • 5Finally, make sure that a lawyer with expertise in franchising assists you when setting up your franchise. Franchising is a complex area of the law – a generalist lawyer will simply not have the expertise and practical experience required. An experienced franchise lawyer will provide two valuable types of advice – (i) what the franchise law requires, and (ii) insight into market practice for comparable franchise systems is in the real world.