Question: Does a Franchisee Need Independent Legal Advice?Answer:
Yes. When taking into account the considerable fees involved, buying a franchise is a significant investment. Franchisees should not disadvantage themselves by signing a Franchise Agreement without first seeking independent legal advice from an experienced franchise lawyer.
The main benefits of obtaining advice from a franchise lawyer includes ensuring the Franchise Agreement complies with the Franchise Code of Conduct, looking at the level of support the Franchisor will offer the business throughout the term of the agreement, ensuring there are no unexpected terms that may be difficult to comply with during the term of the agreement, ensuring the franchisor has provided all necessary forms, and advising you of the costs involved with running your business on a day-to-day and long-term basis.
A prudent business owner will also obtain financial advice from an accountant or consult a business adviser as part of carrying out due diligence.