Buying a franchised business requires a lawyer familiar with the documentation and procedures in this niche area of law.
- Training is generally provided by the Franchisor (not the Seller);
- Timeframes must allow sufficient time for Franchisor approval, training and any other Franchisor requirements;
- Documentation and timing must comply with the Franchising Code of Conduct;
- Special conditions must be included to give you time to review the Franchise Agreement and the franchise system and give you the ability to withdraw and recover your deposit if you are not satisfied;
- Often leasing arrangements differ in a franchised model;
- Restraints of trade on the seller are usually limited to what is set out in the Franchise Agreement;
- You must be clear on who is responsible for various franchisor fees and charges (sometimes a seller will try to push fees onto the buyer which are generally payable by a seller).
The Small Business Lawyer has acted for many buyers and sellers of franchised businesses. We have experience working with many popular Australian franchised systems and are already familiar with their processes and documentation, giving you a distinct advantage as a potential franchisee.
- Items of importance which you need to note;
- Items which might be worth negotiating;
- Items which you are not standard and you should not agree to.