Franchisor Lawyers | Greyson Legal

A Guide for Franchising a Business and Franchise System Setup

Greyson Legal are leading Sunshine Coast franchise lawyers. We represent a number of Franchisor clients with franchised outlets and other licensing interests across Australia and internationally.

We have legal offices in Caloundra and Redcliffe, although our client base is quite broad in terms of location.

Franchising is a proven model for business expansion, through a system based on standardisation and replication.

If you are a budding entrepreneur or in the business start-up stage taking a new concept to market; or an existing business owner, franchising is a model which an be adopted as a business growth strategy and as a brand expansion mechanism.

As with any business, there are risks, so appropriate due diligence needs to be carried out before venturing into a franchise system setup.

In this franchisor guide, we deal with a number of the legal services Greyson Legal provides as part of setting up a franchise model. The guide is a summary only and appropriate legal advice in relation to your specific requirements should be obtained.

For an obligation free discussion about franchising and how we can help you grow your business, contact Greyson Legal

Legal Services for Franchisees

If you are:

  • considering buying a franchised business;
  • seeking information about what is involved in becoming a Franchisee;
  • are an existing Franchisee and looking to sell your franchised business;
  • need legal help dealing with your Franchisor, due to a dispute or similar,

refer to the section dealing with our Franchisee legal services.

Our Other Practice Area

We find that our clients often have legal requirements other than in relation to just franchising.

In addition, franchising law cuts across a number of other legal practice areas. For this reason, Greyson Legal offers a broad range of commercial and property law legal services.

For more information click on the link below: 

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Strong Foundation

A franchise system should be based on a strong foundation supported by careful planning and appropriate due diligence. At Greyson Legal we can help you to ensure that necessary planning and due diligence is carried out.

Initial Steps

As part of the preliminary franchisor legal service we provide, Greyson Legal:

  • attends various consultations with you to understand your business and requirements for the franchise model;
  • generally explains the franchising process;
  • advises on the different business structures that can be  utilised;
  • liaises with your accountant as part of the structuring stage, whether that is in relation to registering companies or establishing trusts;
  • advises you about statutory and regulatory compliance requirements;
  • discusses Franchise Association membership;
  • (given intellectual property rights of a franchise are one of the most valuable assets of the franchise system), we discuss how to use your existing intellectual property and advise on strategies to protect that intellectual property. This may include:
    • clarifying IP ownership;
    • registering trademarks;
    • assigning existing trademarks;
    • drafting IP licences;
    • etc.

Documentation Phase

There are a range of legal and other documents that need to be prepared. Greyson Legal's franchisor legal services extends to:

  • pre-franchise documents, such as:
    • Franchisee application forms;
    • Deposit forms;
    • Confidentiality Agreements;
    • etc
  • discussing the specific terms and conditions required in the Franchise Agreement and related documents, including:
    • Franchise fees;
    • Royalties;
    • Marketing fund;
    • Other fees;
    • Franchisor duties;
    • Franchisee obligations;
    • Restraints;
    • etc
  • drafting the Franchise Agreement;
  • preparing Code compliant Disclosure Document;
  • associated Code compliant documentation;
  • personal guarantees and other security deeds;
  • ancillary licenses (as required);
  • etc

We can also assist our clients in relation to developing internal franchisor business documents, such as:

  • Procedures or Operations Manuals;
  • Training, HR and Other Manuals; 
  • Franchisee Information (or Introduction) Kits;
  • etc

Premises and Leases

Where the franchised system is based on Franchisees independently operating the franchised businesses from physical store locations, such as, a retail or food outlet, Greyson Legal can also assist our clients with:

  • any Headlease the Franchisor may be entering into;
  • Landlord negotiations;
  • leases/sub-leases, fitout deeds, occupancy licenses, seating licenses, parking licenses;
  • etc  

Updating Franchise Agreement

Due to changes in legislation and laws, we:

  • actively keep our clients informed so they are aware of such changes and any impacts on the Franchisor, the Franchisee or the franchise system;
  • draft necessary amendments to the Franchise Agreement and other documents so that they remain compliant.

Managing the Franchise Network

Greyson Legal assists its Franchisor clients with management of the franchise network through:

  • assisting with Franchise dispute resolution;
  • overseeing any Franchised business re-sales including:
    • preparing all necessary franchise and other documentation required for the transfer, such as:
      • any Deeds of Assignment;
      • new Franchise Agreements (if required);
      • Code compliant Disclosure Documents;
      • etc
    • reviewing and advising the client about terms and conditions to any Contract of Business Sale between an outgoing Franchisee and incoming Franchisee;
    • ensuring the business conveyance process (from the Franchisor's perspective) proceeds correctly so that Franchisor's consent to the sale can be granted;
    • etc
  • assisting the client with general commercial law matters relevant to the franchise system as they arise.  

Sale of an existing Franchise Network

In the event the franchise system itself is to be sold, Greyson Legal's Franchise lawyers can advise and assist with the sale process.

Have a Franchising question ?

If you have any questions about using franchising:

  • as a way to develop your business concept; or
  • expand your existing business; or

you just require information more generally about franchising, we welcome your enquiry.

Greyson Legal are a leading franchise law firm on the Sunshine Coast and are the only truly dedicated franchise lawyers in  Redcliffe, the Moreton Bay area and north of Brisbane.

Contact

 Tel: 1300 667 362 | Fax: 07 3910 1102
E: info@greysonlegal.com.au
Member of Queensland Law Society