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Franchising

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Franchising

Franchising is one business model that is available to people who wish to start a business chain, for those who wish to participate in opening a franchise. If you have questions about starting, or you have entered into a franchise agreement and would like to be legally aware of the implications of owning a franchise, Morgan Mac Lawyers are highly experienced Franchise Lawyers. They have offices based in Brisbane and Ipswich, and provide legal advice and legal services to Fanchisees and Franchisors throughout Queensland.

 

If you need more clarification on which category may apply; The franchisor offers to the franchisee the right to operate a business format it created. The franchisee decides to operate a business using the franchisor’s format.

The benefits of a franchise is that the franchisee acquires a proven business system that has worked for the franchisor and other franchisees. The franchisee may not need to create business systems and find suppliers and products or services as these have been sourced or developed by the franchisor. A franchise allows the franchisor to provide benefits to franchisees by operating on a larger scale in terms of broader marketing campaigns and purchase arrangements based on bulk buying power.

Starting any business involves risk. It is no different with a franchise business. However, there are some risks that are specific to franchisees, including restrictions placed on franchisees through contract terms such as preferred supplier terms, approved goods or approved supplier terms, restrictions of the franchisee’s rights to control their cashflow. There are also other risks to franchisees that are not part of the franchise agreement such as the franchisor trading in competition with its own franchisee.

We can assist by advising you of the risks of entering into a franchise agreement so that you make an informed decision to purchase a franchise.

Our priority at Morgan Mac Lawyers when providing franchise legal advice to clients who are seriously considering a franchised business purchase. It is imperative that people entering into franchisee agreements are aware of specific risks that should be taken into account before the agreement is signed and the client makes a significant financial and life changing investment.

If you are considering becoming a franchisee you are prepared to accept the risk of owning and operating your own business. You have also decided, or are considering, that the franchise model is suitable for you as a means of owning and operating a business. Speak to our experienced Franchise Lawyers in Brisbane, or our Ipswich Franchise Lawyers before taking these steps. 

It is critical that you obtaining appropriate professional advice

The critical importance of obtaining appropriate professional advice is recognised in the Franchising Code of Conduct. It requires the franchisors to ensure that persons considering a franchised business purchase obtain legal advice or at least make a thoughtful decision not to obtain advice. Relevant and appropriate legal advice before buying a franchise may result in a well-informed decision and avoid future franchise disputes.

Buying a franchise usually commences a 5 or 6 year contractual relationship between the franchisee and the franchisor, and the franchise agreement you shall be asked to sign as a new franchisee shall impose many obligations on you. In our 20 years’ experience in franchising law we have reviewed many franchise agreements. In the last 2 years alone, Bill Morgan has reviewed over 40 franchise agreements. They all impose few obligations on franchisors but numerous obligations on franchisees. Our advice focuses on key obligations and what they mean, not just legally, but in commercial terms in the operation of a franchised business.

Over 20 years experience

Bill Morgan, one of our seasoned Franchise Lawyers, has acted in franchised disputes for over 20 years. We are aware of many franchise agreement terms that impose significant commercial risks on franchisees and the reasons why these terms lead to disputes and cause real business difficulties to franchisees. Our franchise legal advice brings these terms and their risks to your attention.

Our Legal Team

Bill Morgan

bill morgan morgan mac lawyers

Bill Morgan, who has over 20 years experience in all facets of commercial litigation matters such as franchise disputes, consumer protection, contractual disputes, property disputes, insolvency and bankruptcy proceedings. Bill has acted over a number of years in disputes between franchisors and franchisees of franchises. These disputes have been litigated in the Federal Court, Federal Circuit Court and State Courts or resolved through the mediation services. Ask for Bill Morgan, our franchise lawyer, serving clients in Brisbane, Ipswich, and throughout Queensland.

Contact Bill Morgan

Amie Mac

Amie Mac Morgan Mac Lawyers

Amie Mac has 20 years combined business and legal experience working with small enterprises to large corporations across the United Kingdom and Australia. Specialising in legal and regulatory compliance, assisting business and commercial industries, with complex transactions to day-to-day operations. Prior to practising law, Amie consulted businesses on corporate advisory matters and in restructuring, including insolvency and turnaround strategies. Amie’s technical expertise means you get the best legal advice and solutions.

Contact Amie Mac

Thinking about buying a franchise? Speak to our Franchise Lawyers. Also you can download our Beginner’s Guide to Buying a Franchise below. 

FREE DOWNLOAD

beginners guide to buying a franchise front cover

GUIDE CONTENTS:

  • Outlines the benefits and risks of buying a franchise.
  • Stresses the importance of seeking legal advice.
  • Discusses preparation of necessary documentation
  • Prelude to the “7 Must Do Checks for Franchise Agreements”

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