Legal review for

your Franchise

Agreement

A Franchise Agreement is a legally binding contract between a franchisor (the owner of the franchise) and a franchisee(the individual or business purchasing the right to operate under the franchise brand). This agreement outlines the terms, conditions, and expectations for running a business using the franchisor’s established brand, systems, and support.

Key aspects typically covered in a Franchise Agreement include:

1. Rights to Use Intellectual Property:
   • The franchisee is granted the right to use the franchisor’s brand name, trademarks, logos, and proprietary systems. This allows the franchisee to operate under the established identity of the franchise.
2. Obligations of Both Parties:
   • The agreement specifies the responsibilities of the franchisor, such as providing training, support, and marketing materials, and the obligations of the franchisee, such as adhering to brand standards, paying fees, and following operational guidelines.
3. Fees and Royalties:
   • Franchisees are typically required to pay initial franchise fees, ongoing royalties, and other fees (e.g., marketing or technology fees) as specified in the agreement. These payments contribute to the franchisor’s support and the franchise system’s overall growth.
4. Operational Standards:
   • The Franchise Agreement sets out the operating standards the franchisee must follow to maintain consistency across all franchise locations. This can include guidelines on product quality, customer service, and location appearance.
5. Duration and Renewal Terms:
   • Franchise Agreements specify the length of the franchise term (e.g., 5, 10, or 15 years) and the conditions for renewal or termination. This provides clarity on the franchisee’s commitment and any renewal requirements.
6. Termination and Exit Conditions:
   • The agreement outlines scenarios in which the agreement may be terminated, such as breach of contract or financial insolvency, as well as the process for selling or transferring the franchise rights.

A Franchise Agreement is essential for setting the legal foundation of a franchise relationship, ensuring both parties understand their rights and obligations. It is typically detailed and complex, and prospective franchisees are encouraged to seek legal advice to fully understand the terms and potential risks before signing.

Our Franchise Agreement Review package provides a thorough legal assessment of your Franchise Agreement and accompanying documents. Here’s what’s included:

1. Comprehensive Review of Franchise Documents:
   • We conduct a detailed review of your Franchise Agreement and Disclosure Document to ensure you understand the terms, obligations, and potential risks before committing to the franchise.
2. Phone Consultations with a Lawyer (Up to 60 Minutes):
   • You’ll have direct access to a Sprintlaw lawyer for a total of 60 minutes of phone consultations. During this time, your lawyer will discuss your specific concerns, explain the key legal issues, and answer any questions you have about the documents.
3. Personalised Legal Advice:
   • Your lawyer will provide clear guidance on the legal implications of the agreement and advise on any issues or red flags that may impact your rights and obligations as a franchisee. This advice ensures you’re fully informed before making a decision.
4. Provision of a Legal Advice Certificate (if Required):
   • If a legal advice certificate is required by the franchisor, this can be provided as part of the package. This certificate confirms that you have received independent legal advice on the agreement.

Additional Information

• Due Diligence: This package does not include due diligence on the franchisor, such as reviewing their financial stability or business reputation. For due diligence inquiries, additional services may be available.
• Modifications to the Franchise Agreement: No changes or edits to the Franchise Agreement are included. Our review focuses on helping you understand the agreement, but does not involve negotiation or amendment of terms.
• Lease Review: If you also need a Lease Review for your franchise location, please inquire about our separate Lease Review package.

Our Franchise Agreement Review package is designed to equip you with the knowledge and confidence to make informed decisions about entering a franchise. Please contact us to learn more about how this service can support your franchising journey.

Our fixed-fee Franchise Agreeent Review packages start at $1900 + GST.

This includes a Franchise Agreement Review, written advice, and phone consultations with an expert Sprintlaw lawyer.

As an online law firm, we eliminate the headaches of paying us by the hour and finding time to meet with a lawyer in person. We communicate via phone, email and cloud conferencing — whichever suits you! We know you’re busy, so we’re only a click away.

You’ll be guided through this process by our expert lawyers, who are Australian-qualified and were trained at leading law firms. They left the traditional corporate law sphere to help us make legal services better. Our lawyers specialise in technology, intellectual property, contract drafting, corporate and commercial law.

Our law firm operates completely online, which means we can help you wherever you are in Australia. We work at The Commons Central – a cool co-working space in Chippendale, Sydney – but our lawyers often work flexibly across various locations.