5 things you need to know about Reviewing Franchise Documents
- Whether you’re considering signing up to a franchise agreement as a new franchisee, or you’re seeking to better understand the terms of a franchise that you’re currently involved with, a thorough review of your franchise documents is an obvious first step.
- The main document you’ll need to have reviewed is the franchise agreement. The franchise agreement is essentially a contract between the franchisor and the franchisee which sets out the terms of the franchise. This includes upfront and ongoing payments and ongoing obligations. The franchisor may require a personal guarantee, and a restraint of trade after you leave the franchise.
- The Franchising Code of Conduct also requires franchisors to provide prospective franchisees with a disclosure document. A disclosure document summarises the franchise agreement, and it forms part of the pack of documents you’ll have your lawyer review.
- Franchising is a specialist area, so it’s important that you work with a lawyer with the necessary expertise in the area. Issues in franchise agreements can be difficult to detect to the untrained eye.
- Finally, if you’re a prospective franchisee, make sure that you have all relevant documents (including any commercial lease agreement) reviewed before signing. Contractual agreements can be difficult to get out of, so take the time before signing to ensure a thorough review is completed.
Commercial Law, Contract Law, Information Technology And Online Law, Intellectual Property, Capital Raising LawExperience:
Bank of America Merrill Lynch, Baker & McKenzie, Hogben Group
Employment, Franchises, Business And Commercial, LitigationExperience:
Clinch Neville Long, McCabes, Neville & Hourn
Franchises, Business And Commercial, LeasingExperience:
Everingham Solomons, Edney Ryan Legal, Attwood Marshall, Lexis Nexis Precedents Author, Academic Marker, University of New England Law School