Franchising

Atkinson Vinden has always proved a leader in providing commercial advice in commercial transactions and in particular the niche area of franchising. Franchising is a commercial relationship where the franchisor licences or assigns to third parties rights to distribute, market or sell the franchisor’s product and brand over time.

Whilst franchising possesses many elements of a commercial transaction, it is a specialist area heavily regulated by the Australian Consumer and Competition Commission and the Franchising Code of Conduct (Code). The Code creates legislative protections for both franchisors and franchisees which cannot be contracted out of.

For a franchisee, buying a franchise can be a very rewarding exercise if the client is clear on its rights and responsibilities. Franchise agreements and associated documentation are usually lengthy and can be quite overwhelming. We provide our clients with a detailed review of the documentation to ensure they fully understand what they are signing. Our franchising specialists negotiate on good faith seeking for a fair outcome based on industry standards, ensuring the commercial relationship between the parties is not frustrated.

When acting for a franchisor, we draft our agreements to protect our clients’ brand and compliance with the Code, avoiding severe ramifications in the future. It is not unusual for us to review franchise agreements for franchisors where it becomes apparent that the agreements do not comply with the Code which exposes the franchisor for severe penalties and scrutiny from the ACCC. Our lawyers draft and negotiate in a commercial manner based on industry standards, simplifying the process between the parties enabling the franchisor to focus on expansion by securing as many franchises.

Our franchising specialists have represented both franchisors and franchisees in many industries and in various stages of the franchising relationship between the parties. Some of these include:

• Franchising Code of Conduct compliance for both franchisees and franchisors;
• Advising prospective franchisees;
• Reviewing, advising and negotiating various franchise documentation for a franchisee;
• Drafting franchising documentation including disclosure documents, franchise agreements and relevant licences;
• Sale and purchase of franchises;
• Dispute resolution between franchisors and franchisees; and
• Commercial litigation for more complex disputes.