For small business owners, running a franchise business often has benefits such as brand-name recognition, marketing campaigns, strong business systems and procedures, and ongoing training and support. However, there can also be potential pitfalls to be careful of, including expensive upfront costs, ongoing costs, refurbishment obligations, and lack of flexibility and independence.
Before you purchase a franchise, it pays to obtain expert advice to help ensure you are aware of the responsibilities and obligations with which you will be expected to comply. The first step in this process is usually a review of the Franchise Agreement and Franchise Disclosure Document (which is a document that must be provided by franchisors to new franchisees).
From our experience in advising franchisees, we are able to identify issues and contractual clauses that might be unusual, unfair or particularly onerous. We will work with you to address those issues so you can proceed with your new franchise business with confidence.
Franchisors need to be mindful of their legal duties and responsibilities which, following recent high-profile Court cases and legislative changes, are now more stringent and onerous than ever.
It is important to balance these legal obligations with the need for franchise terms that give the franchisor a necessary level of oversight, control and legal protections, in their best commercial interests.
Accordingly, Franchise Agreements and other related documents should always be prepared professionally by expert, specialist legal advisors.
Are you buying a franchise? Or thinking of taking your business to the next level by creating a franchise system? Please contact us for expert advice and guidance.