Franchises
Franchises are now common in the market place and Cosgriff Orchard Legal is experienced in advising both franchisors and franchisees as to the legal rights and responsibilities created by a Franchise Agreement. Franchises are regulated by the Trade Practices/Industry Codes - Franchising Regulations 1998 - Franchising Code of Conduct and Compliance.
Sale of a Franchise (franchisor)
It is important for the franchisor to protect its goodwill, reputation and property and to ensure it has complied with its obligations under the Franchising Code of Conduct and the Franchising Agreement.
Factors to consider when selling a franchise:
• Protecting your Intellectual Property;
• Completing the required disclosure documents;
• Negotiating with the franchisee;
• Preparing a Contract for the sale of the franchise;
• Continuing issues regarding non compliance;
• termination and term renewal.
Purchase of a Franchise (franchisee)
The franchisee will have the right to use the business model, goodwill and intellectual property of the franchisor under the requirements set out in the franchise agreement. The franchisee must be fully aware of both its rights and responsibilities pursuant to a Franchise Agreement including the full financial consequences of being a party to a Franchise Agreement.
Factors to consider when purchasing a franchise:
• Relevant business advice regarding asset protection, business succession;
• Review of Contracts for the purchase of franchise;
• Negotiating with the franchisee;
• Compliance with the Franchising Code of Conduct;
• Compliance with the Contract;
• Management of the business.
Our lawyers are experienced in acting for both franchisors and franchisees and can provide full and comprehensive advice in relation to such agreements.
