Franchise Law
Acting for Franchisors
If you have an established brand or unique business that you want to grow further using a franchise system, we can advise you on the legal aspects of franchising. This includes advising you on the relevant laws that apply to a franchise arrangement and what statutory disclosures requirements you as the franchisor must comply with.
We also advise clients on:
- an appropriate legal structure for entities;
- the contractual arrangements with franchisees and other parties such as suppliers, and landlords;
- IP protection strategies;
- how to ensure business continuity; and
- liability issues when franchisors experience difficulties.
After you have made an informed decision to use a franchise system, we can assist to draft the franchise agreement, disclosure document and other related documents for you to present to your potential franchisees.
Acting for Franchisees
If you are considering to take up a franchise or buy an existing franchised business, we strongly encourage you to seek independent professional advice.
While franchises have their merits and appeal, many franchisees do not have a good understanding and are not properly informed of what is involved, risks and obligations under the franchise agreement. This knowledge gap is often one of the causes of dispute between the franchisee and the franchisor.
Seeking proper legal advice before signing your franchise agreement is probably your best investment. We will bring you up to speed on the potential pitfalls, risks and non-standard clauses in the franchise agreement that you should be aware of. We have also in many instances achieve better outcomes and protection for our clients by negotiating suitable amendments to the franchise agreement.
Having a fairly balanced franchise agreement and understanding your obligations and what you must comply with, are the cornerstones to having a good start to your franchised business and will go a long way to ensure longer term success of the business.
