Articles: Franchising Articles
"What are the benefits of using a specialist franchising law firm?" - by Miles Agmen-Smith
© Copyright ASCO Legal 2014
Purchasing a franchise whether it is an existing business or setting up a new franchise is a significant transaction and in most cases your financial future is dependant on the success or failure of the venture. That makes it critical to get the right advice from the right people to ensure you understand what you are getting into and have the right information to be able to negotiate with, the Franchisor, Landlord and your financial institution a deal that will maximize your chances of success.
Franchising is a specialist area of the law and when you purchase a franchise you are likely to need advice and assistance on various aspects such as:
o What is your exclusive territory and what can you do that others can’t in that area?
o What is a Manual and how does it bind you?
o should you get a disclosure document and what to make from the information it contains?
o Does the lease period match the term of my franchise?
o Guarantees and consents for assignment
o Rental reviews and percentage rent
• Intellectual Property Law
o Does the Franchisor or Master Franchisee have the right to licence me to use the intellectual property?
o pre-recruitment planning
o employment contracts
o general advice
Property & Conveyance Law
o Using property as security and registering mortgage/s over your property/ies
Company incorporation and set-up
o Setting up a company or other structure for your business
Trust Law & Asst Structuring
o Setting up a family trust to protect your personal assets from business risks
You will need solicitors who are, familiar with these areas of the law, experienced in dealing with the specific franchise systems, types of transaction and can effectively and efficiently co-ordinate between yourselves, the Franchisor, the Landlord and your financial institution. Timing is always critical which make it important to early on identify what is needed and get it right first time. This will save you unnecessary stress, time and money.
We make sure when we see clients that we explain to them in detail:
• How a franchise really works in practical every day situations
• What they can and cannot do as a franchisee
• Which provisions of the franchise and lease agreements they need to be specifically aware of and /or need to renegotiate
• The nature and extent of their exposure to the Franchisor, Landlord and the Financial institution
• How they can structure their affairs to operate the business effectively and provide a level of protection for their personal assets
Being a franchise specialist law firm means not only can our team provide you with specialist advice which can mean the difference between success and failure of your business venture, we are also able to quickly and efficiently identify what to focus on and what not to so, thereby saving you time and money.
We have prepared this guide to and for our clients. It is not a substitute for detailed advice as every individual situation differs, and also government policies, laws and general conditions constantly change. We are happy to assist anyone who wishes to obtain more detailed advice or information on these or other matters.
This publication may not, in whole or in part, be lent, copied, photocopied, reproduced, translated or reduced to any electronic medium or such other form without the express permission of ASCO Legal except complete copies may be made if fully attributed.