Franchise Lawyer
Franchising offers a pathway to expand your business or operate under an established brand. It can provide support and brand recognition, but it also involves strict legal obligations. Franchisors and franchisees must understand their rights and responsibilities to avoid disputes.
Revolance Legal works as a strategic partner for both franchisors and franchisees. We provide clear advice on compliance with the Franchising Code of Conduct, draft and review franchise agreements and help resolve disputes efficiently.
The Franchising Code of Conduct
The Franchising Code is a mandatory industry code that applies to all franchise agreements. Key obligations include:
Duty to act in good faith
Both franchisors and franchisees must act honestly and fairly towards each other. They should not exercise powers arbitrarily or for an ulterior motive. Parties cannot contract out of this obligation.
Disclosure obligations
Franchisors must provide prospective franchisees with a comprehensive disclosure document, the Code, the franchise agreement and other material documents at least 14 days before signing. The disclosure document must include information about the franchise system, financial statements, existing franchisees and important risks.
Disclosure begins when a potential franchisee expresses interest. A short information statement must be given early, followed by the full disclosure pack before any agreement is signed.
Cooling‑off period
After signing the agreement, franchisees have a cooling‑off period of seven business days during which they can terminate the agreement and recover most of their money. This right does not apply to renewals or transfers.
Limits on contract terms
The Code does not dictate the content of franchise agreements, but it restricts certain unfair terms. For example, clauses that unreasonably restrain a franchisee from operating a similar business after the agreement ends may be unenforceable. Clauses that require franchisees to pay all legal costs, allow franchisors to change agreements without consent or waive liability are also limited.
Franchisors must ensure clauses are fair and compliant. Franchisees should review all terms and seek legal advice before signing.
Franchise Agreements
A franchise agreement sets out the rights and obligations of both parties. It typically covers:
- The grant of the franchise and the territory.
- Fees and payments (initial fee, ongoing royalties, marketing levies).
- Training and support provided by the franchisor.
- Operational standards and quality control.
- Intellectual property and use of the brand.
- Term, renewal and termination rights.
- Dispute resolution procedures.
Agreements are complex and often one‑sided. Proper legal advice helps ensure the terms are fair and protect your investment.
Disputes and Resolution
Franchising disputes may involve misrepresentation, breach of contract, non‑payment of fees, or failure to provide support. The Code requires parties to attempt mediation before commencing court proceedings. A dispute resolution clause in the agreement should outline the process.
How Revolance Legal Can Help
Our franchise law services include:
- For franchisors: drafting compliant disclosure documents and franchise agreements, advising on Code obligations, reviewing marketing and training materials, and managing franchise networks.
- For franchisees: reviewing agreements, explaining risks and rights in plain language, negotiating terms, and advising on exit strategies.
- Dispute resolution: representing clients in mediations and court if necessary.
- Compliance audits: ensuring that franchisors meet ongoing disclosure and good faith obligations.
We combine strategic insight with supportive guidance, helping you achieve your goals while complying with the law.
Frequently Asked Questions (FAQs)
How much disclosure is required before signing a franchise agreement?
What happens if the franchisor does not act in good faith?
Can the franchisor stop me from operating a competing business after the franchise ends?
Build or Join a Franchise with Confidence
Understanding franchise law is essential for both franchisors and franchisees. Revolance Legal provides clear, direct advice and practical support. Contact us on 02 9266 0688 or email [email protected] to discuss your franchise plans.