• Franchising is a complex method of business ownership and is heavily regulated. The framework governing and regulating franchises in Australia incorporates a broad range of legal areas including:

• franchise law;
• contract law;
• consumer law;
• competition law;
• trademarks;
• financial reporting;
• employment;
• compliance; and
• regulation.

• There are frequent disputes between franchisors and franchisees that can be complicated by the potential imbalance of power in the relationship.
• Entering into a franchise agreement without obtaining specialised legal advice often proves to be a poor business decision in the long run. It can result in significant financial losses if the enterprise proves unworkable or you find yourself in breach of your responsibilities.
• As a franchisee engaging a lawyer before entering into any franchise agreement is essential and can help you avoid committing to contractual arrangements that are not suited to your:

• skills;
• capacity; or
• personal financial goals.

• As a franchisor engaging a lawyer to assist in the due diligence and examination of potential franchisees can give your business the best chance of successful expansion and can increase the value and presence of your brand in the marketplace.
• In particular a franchise lawyer can:

• advise you on your many options for starting a new business from setting up your own business as a sole trader or company right through to purchasing a franchise;
• evaluate which business option is going to best suit your personal situation and financial goals;
• help you to undertake research and due diligence enquiries into your industry and franchise of interest;
• assist you to evaluate whether a particular franchise is legitimate and financially viable;
• advise you of the risks and pitfalls and extent of your potential legal liability when purchasing a franchise;
• advise you of your rights and responsibilities under the relevant industry codes and regulations for example the Franchising Code of Conduct;
• ensure that any proposed franchise agreement adequately represents your personal and business interests;
• assist you in managing your franchisees particularly their compliance with the franchise agreement;
• prepare you for any impending mediation or alternative dispute resolution processes that come up under a franchise agreement or the Franchising Code of Conduct; and

keep you up to date with any changes to the law and regulation regarding franchises in Australia and internationally