|BEWARE Franchising is a highly regulated and document intensive area of expertise that involves many areas of law including property, commercial and corporate, competition, trade practices and consumer protection, contract, dispute resolution, intellectual property (such as business names, trademarked logos and other brands) and employment.
The Franchising Code of Conduct (the Code) and the Competition and Consumer Act (previously the Trade Practices Act) determine whether or not an arrangement is a franchise and, if so, the Code will govern the relationship between franchisor and franchisee.
An arrangement may be a franchise even though all of the documentation, and the parties themselves, refer to the arrangement as a “licence” or “distribution agreement”.
A majority of franchise systems with the Code when they are first set up but, due to change of ownership, lack of understanding, passing of time, or simply due to a failure to have any compliance procedure in place, the system no longer complies.
If you purchase a “non-compliant” franchise you may “inherit” problems, and the associated risks, including personal liability.
If you are selling a franchise that does not comply with the Code, you may not achieve the purchase price you expect as the purchaser may reduce the price offered as they may have to “fix up” any problems they may ask you , they may ask you to fix up any problems which may delay the purchase, or the purchaser may “walk away” from the purchase
Our lawyers have had extensive franchising law experience acting for a wide range of clients ranging from “mum and dad” small businesses to large franchisors, such as Eagle Boys Dial-A Pizza Australia and Sleepy’s, including:
We can help you if:
For further information, please contact
Greg Shaw of Irish Bentley Lawyers
on (07) 3891 3333 or visit
Ph: +61 7 3891 3333