Franchises Articles

Buying a Franchise – Pros and Cons

by | Franchises

Thinking about buying a franchise? There are several factors that need to be considered. What’s good and what’s bad about a franchise? Franchises – The Good 1. The business is already up and running There will be an initial outlay of money for the franchise but the purchaser/s should hit the ground running. There shouldn’t… Read more »

In most commercial transactions the parties will need to negotiate the terms before agreeing on the final details.  Successful contract negotiation is not just about who has greater bargaining power – it is also about research, planning and following some well recognised guidelines. Examples of these transactions include; shareholder agreements, partnerships dissolutions, commercial leases, the sale… Read more »

Leaving a Franchise

by | Franchises

Before Leaving a Franchise The best advice we can give you before leaving a franchise is the same as we would give before entering a franchise – read the franchise agreement and disclosure statement and, above all, get independent legal advice before you sign anything.  This will help you avoid some of the more common… Read more »

If you have been thinking about starting a new business, now might be a great time with the introduction of a number of significant small business incentives set out in the Federal Budget for 2015/16 announced on 12 May 2015.   The tax incentives for new business start ups include: Small business tax rate cuts (the 2015/2016 tax… Read more »

Prospective franchisees are often overwhelmed with a mountain of paperwork including the disclosure document, franchise agreement, Franchising Code of Conduct (“the Code”), property and equipment leases, loan and security documentation.  The Code requires that before a franchise agreement is entered into the franchisor must receive from the franchisee a signed statement that the franchisee has received independent… Read more »

We may still be disappointed when a due diligence exercise reveals what a mistake the purchase of a particular property or business would have been.  It can be difficult to overcome the excitement and anticipation of a new home, investment or business, even though your lawyer shows you that you may have just “dodged a… Read more »

Starting a business can be an exciting and rewarding experience.  It can also quickly become a nightmare (even if the business is successful). Often it is difficult for an individual to find the finance necessary to start a business and so people look for partners.  A partner can also bring to the business skills and… Read more »

A fairy floss story: Whizzo had a fairy floss franchise.  It sold its territory in SA and WA to Floyd.  Under the franchise agreement, Floyd agreed not to compete with Whizzo after the end of the franchise period for 10 years anywhere in Australia. At the end of 5 years, Whizzo asked Floyd to renew… Read more »