Buying a franchise business has a number of distinct advantages.
As a franchisee you will be gaining the benefit of the franchisor’s experience and “know how”. You are buying a system of operation that the franchisor has worked out and which has had many of the issues associated with starting a new business from scratch ironed out.
After buying a new home, it is probably the second biggest financial decision you will ever make.
At Lopich Lawyers, we understand that when you are making these big decisions, you need someone who will help you through the maze. Our experienced team of lawyers really know and understand how franchise businesses work.
We have many years of experience in dealing with all aspects of the establishment and operation of franchise businesses. This means that we understand what questions you need to ask the franchisor, what things to look out for in the franchise agreements, how to treat the franchisor’s “profit models” and how to point you in the right direction before you make the big decision to buy a franchise.
So where do we go from here?
At our first meeting, we will give you a list of things to consider and to do so that you can understand how your franchise business actually works. We will also explain possible and real risks and give you advice around the best structure for you to buy your franchise.
We will, of course, also work closely with your accountant and financial/business advisors to ensure that you understand the franchise business that you are buying.
We are also uniquely placed to help you if you are have issues with your franchisor. At Lopich Lawyers our experience in dealing with franchises and the types of issues that can arise means that we can help you work through these difficulties and issues around the Franchising Code of Conduct.
If you are considering buying a franchise or have concerns about your franchise business, contact Lopich Lawyers on 1300 783 634.
Take care when the agent suggests a “preferred” solicitor
Some business and real estate agents may refer you to a “preferred” solicitor, on the basis that this lawyer has acted for other franchisees. Be cautious when engaging a “preferred” solicitor, as there is a question as to their independence.
Will the solicitor be concerned that if they give advice outlining the risks of buying the particular franchise business, they may not get more referrals from the agent? Consider these and other issues:-
- Does the solicitor look at each franchise agreement afresh?
- Are they willing to negotiate with the franchisor on issues arising from the agreement?
- Will they ensure that the elements of the Franchising Code of Conduct are adhered?
- Why is the agent giving you a “preferred” solicitor, when they work for the franchisor?
How can we help you?
Buying a franchise business means that you are acquiring a form of licence from which the owner (Franchisor) of a product or service to use a “tried and proven” method of operation which the franchisor makes available to other affiliated dealers (Franchisees) together with the right (usually) to conduct the business in exclusively in a defined geographical area.
Lopich Lawyers can provide assistance for a range of legal matters related to Franchise Law, including advice on:
- Franchise disclosure documents, leases and franchise agreements;
- Consumer protection legislation and the Franchising Code of Conduct;
- Breach notices issued under franchise agreements;
- Royalties, levies and other payments
- Commercial leases and licences
We can also assist you with common franchising disputes, including:
- Misrepresentations by franchisors as to earnings, profit and loss, disclosure documents;
- Unconscionable conduct in the lead up to signing the franchise agreement;
- Breaches Notices under franchise agreement;
- Failure by a franchisor to comply with disclosure requirements;
- Terminations under franchise agreements;
- Selling “unauthorised products”
- Franchisor “stepping-in” powers
Are you having issues with your franchise and need some advice, contact Lopich Lawyers on 1300 783 634.