Franchise Agreements,

quick & easy.

A franchise is a type of business structure where the owner of a business (the franchisor) licenses another party (the franchisee) to use the business’ trade name and operating structure. The franchisee will then open up the same business in a different location and pay the franchisor a fee, usually on a monthly basis.

This is a great way to increase the business’ reach and maximise profits. However, franchises are regulated by the Franchising Code of Conduct, so it’s important to understand your legal obligations as either a franchisor or franchisee.

A Franchise Agreement is one of the essential documents between a franchisor and franchisee. It is a contract that sets out the terms by which one party (the franchisor) grants another party (the franchisee) the right to carry on a business according to the system or marketing plan determined by the franchisor.

The relationship between the franchisor and franchisee is governed largely by their Franchise Agreement along with the Franchising Code of Conduct, so it’s an important document to refer to in case a dispute arises.

A Franchise Agreement generally outlines four main things:

1. Key terms of the business
2. The franchisee’s obligations
3. The franchisor’s obligations
4. Procedures that will be relevant to the purchaser/incoming franchisee

It includes clauses regarding the payment of franchise fees (including royalties, marketing fees, utility fees etc), reporting, marketing, training and performance criteria.

The agreement should also detail any requirements set out by the Franchising Code, such as relevant fees or disclosure documents.

It’s important that your Agreement reflects the requirements set out under the Code as these are your legal obligations. It should also cover the franchisee’s rights with respect to the sale of that franchise to a third party.

You can read more about Franchise Agreements here.

Our fixed-fee Franchise Agreement packages begin at $1400 + GST.

As part of this package, we’ll draft a Franchise Agreement according to the requirements of your business. You’ll also receive phone consultations with an expert Sprintlaw lawyer and a complimentary amendment to the final draft we provide to you.

It’s important to seek advice from an experienced lawyer who can advise you on the process and whether your Franchise Agreement includes the relevant provisions and that your business activities are compliant with the Code.

Sprintlaw has an expert team of lawyers who have worked with a broad range of franchise businesses across Australia. Whether you’re a franchisee or franchisor, we can help – no matter what stage you’re at in your legal journey. Our fully online model makes it easy for you to access and communicate with a lawyer quickly and at times that suit you.