Parke Lawyers are Accredited Specialists in Business Law.  Whilst purchasing a franchise can be an exciting and rewarding experience, it is important that you know the risks, how the process works and what your rights and obligations are under the law. At Parke Lawyers our expert franchising lawyers provide you with the guidance and support you need throughout your purchase.

Franchise Agreements

A franchise agreement is a written agreement where one party grants the right to carry on the business to another party, under a specific system or marketing plan. It is usually for businesses associated with a particular trademark or symbol, as specified by the franchisor. The franchisee will need to pay a specific amount to the franchisor before the business can start.

For those considering purchasing a franchise, the franchisee manual published by the ACCC is a great starting point – it is intended to help franchisees and prospective franchisees understand their rights and responsibilities under the Franchising Code of Conduct. After scoping available franchises, it’s a great idea to actually talk to some existing franchisees about their experience with the franchisor. Due diligence is a must – as is the need to avoid scammers.

Before entering into a franchise agreement, the franchisor must provide you an information statement, which outlines some of the risks and rewards of franchising. The franchisor must also provide you with a disclosure document, as well as the franchise agreement and a copy of the Franchising Code of Conduct at least 14 days before signing a contract.

Key considerations in reviewing the disclosure document include:

  • franchise territory
  • purchasing ability of franchisees
  • online sales
  • site selection
  • payments
  • unilateral variation
  • end of term arrangements

Our specialist franchising lawyers can guide you through the process and add real value to your due diligence investigations.

Franchise Disputes

Our lawyers are highly experienced in handling franchise disputes, including managing litigation for both franchisees and franchisors. They work with you to achieve the best result in respect of the mediation process and court proceedings.

Good legal advice and managing the dispute early avoids escalation of a dispute between a franchisee and a franchisor. Our lawyers provide a personalised service, knowledgeable advice and expertise in handling legal disputes.

Talk to one of our lawyers about a franchise agreement with a free 15-minute phone call.

Your Business Law Team

Jim Parke
Robert Wilson
Roland Müller
Dennis Wawra
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Email: law@pl.com.au
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