Entering Into A Franchise Agreement
Blake Palmer is a partner at Baybridge Lawyers, where he leads the litigation practice. Blake has worked in Sydney for 15 years, including four years at NSW Bar. His main areas of activity are commercial litigation, franchise litigation, equity and contract, competition and consumer law, construction, insolvency, mediation and alternative dispute resolution. Blake has a track record on complex disputes. “You want the franchise to be the same and feel, whether you`re entering a place in New York, Iowa, or Europe,” Goldman said. The conclusion of a franchise agreement must be carried out with careful reflection. Franchises offer everyday businessmen the opportunity to enter and operate under a well-known brand and image. A franchise is an agreement where by which a franchisee recognizes the right of a franchisee to sell, deliver or distribute goods or services in a manner predetermined by the franchisee. For example, the franchisee is often asked by the franchisee to offer the goods or services as part of a well-established marketing system or plan – prices, products and even revenues are dictated. Therefore, the freedom to run your own business is somewhat restricted when you enter this type of regime. As soon as you show a genuine interest in a franchise, franchisees must inform you of the risks and opportunities of franchising by giving you an information statement as soon as possible (as defined by the Code). The ACCC has simplified it into Hindi, Chinese and traditionally translated it from Chinese. If an agreement meets the definition of a franchise agreement, it is covered by the code, even if someone does not call it a “franchise.” The development of a franchise agreement is a process that is best carried out under the guidance of a qualified franchise consultant or lawyer.
The parent company`s business plan and other essential components of the operation must first be designed to reflect franchising efforts. Since a franchise agreement is supposed to reflect the uniqueness of each franchise offering and explain the dynamics of the proposed franchise relationship, copying the agreement from another franchise system is probably the biggest mistake a new franchisee can make. There are laws that must be followed when franchising in Australia, including the Franchise Code of Conduct and the Australian Consumer Act.
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