Franchise Agreements

Franchising has become popular with small business owners in Australia.  There are many well-known brands and businesses that operate in a franchise structure.  Buying into a franchised brand involves purchasing the rights to use an established brand, product or service that also has established administrative, marketing and operational systems in place to assist you in growing your own business.  There are usually set rules relating to administrative processes, purchasing of inventory, marketing, shop/office layout, colours/branding and many other areas.  

Prior to purchasing a franchised business, it is important to contact CLO Lawyers for advice on a range of areas to help guide your negotiations and also the final decision.  Some of these considerations include:

a) Purchase cost

b) Ongoing franchise fees

c) Operating procedures

d) Entry/exit fees and penalties

e) Minimum performance criteria

f) The brand reputation in the community 

g) The demand for the type of product or service

h) How long the franchisor has been operating?