Franchise Law
Franchising is an important contributor to Australian business. The Government reports that Franchising contributes approximately 9% of GDP in Australia. There are about 80,000 franchise outlets turning over AU$146 billion pa. 4% of small businesses in Australia are franchises and approximately 500,000 people are directly employed in the sector.
Franchisors need to ensure the disclosure obligations under the ever evolving Franchising Code are complied with in order to avoid large fines. They also need to ensure the terms and conditions of the Franchise Agreements they enter into with Franchisees comply with the Unfair Contracts Legislation.
Franchisees on the other hand should insist on disclosure by Franchisors all those matters they are entitled to receive under the Franchise Code, understand whether the terms of the Franchise Agreement are fair and reasonable and comply with a Franchisor’s obligations under the Code. Franchisee’s also need to be aware of their rights if there is a dispute including compulsory mediation.
Dempseys Law expertise includes:
- Advising Franchisors of their obligations under the Franchise Code;
- Advising Franchisors on the content of their Disclosure Statements and Franchising Agreements;
- Advising and negotiating for Franchisees the terms of their Franchise Agreement;
- Advising on and enforcing reasonable of restraint clauses in Franchise Agreements;
- Conducting due diligence on a Franchise network for a prospective Franchisee;
- Enforcing terms of Franchise Agreements for Franchisors and Franchisees; and
- Resolving disputes between Franchisees and Franchisors through either direction negotiation or mediation.