Are you considering purchasing a business involving a franchise? We are the experts with many years of experience in providing advice to people looking at becoming either a franchisee or franchisor.
Franchising is a way of doing business where the owner of the business (the franchisor) grants the franchisee the right to market and distribute their goods or services and to use the business name. The franchisor may also provide assistance in organising training, merchandising and management.
Generally, a franchisor will collect payments from the franchisee for the right to use their brand and participate in their business system. Fees for purchasing an up-front franchise and set-up can range from $5,000+ to as much as $1 million so it is of vital importance that you obtain legal advice prior to purchasing a franchise.
There will also be additional ongoing payments for the franchise support which can be an agreed fixed monthly amount or calculated as a percentage of the turnover of the business. At Quinn & Scattini we can advise you on what format will be in your best interests.
The relationship between a franchisor and a franchisee is a legal relationship with many aspects of the franchise being contained in a detailed franchise agreement.
We can guide you through the franchise agreement and explain to you in plain English just what your obligations and responsibilities will be if you enter into the agreement. Due to the nature of the franchise relationship most franchise agreements are geared towards protecting the franchisor's business reputation. Our Business Team can negotiate on your behalf to make the agreement as fair and equitable as possible.
We can also assist you in evaluating any disclosure material that is required during the franchise application process to ensure that both parties comply with all requirements.
We are experienced in assisting existing franchisees who wish to sell their franchise. Most franchise agreements require the consent of the franchisor prior to the sale of the business and we can guide you through these requirements.