20 min read
Advantages and Disadvantages of Franchising
I have been involved in franchising businesses since the early 1980's. At that time, franchising as a business growth...
You've worked hard to develop and build your brand - you want to grow in the right way, through best practices and customisation - not cookie cutter and "copy and paste". Your franchise model and your franchise documents form the foundation of your franchise system - yes, you want to sell franchises, but if your foundation isn't right, then things can become unstable.
STARTING AT $5,000 plus GST
We start by evaluating your business model and brand assets.
We build the foundation for a successful franchise system by ensuring that your brand is protected.
What you'll get:
☑️Corporate Structure
☑️Company Registration
☑️Trademark Protection and Registration
☑️Licence Agreement/s
☑️Confidentiality Agreement
IT'S RIGHT FOR YOU IF ...
You haven't protected your brand, or registered your trademark, and you want to ensure that your brand is protected before you franchise your business.
STARTING AT $5,000 plus GST
We develop the model on which your franchise system will be based.
We start with a development strategy session where we explore your financial performance, product or service delivery and your overall goals.
What you can expect:
☑️ Competitive Brand Analysis
☑️ Franchise Development Strategies
☑️ Growth Structure
☑️ Franchise Fee Structure
☑️ Royalty Structure
☑️ Marketing Fund Structure and Compliance
☑️ Territory Structure
☑️ Operations Manual Recommendations
☑️ Restraint of Trade Development
☑️ Supply Arrangements
☑️ Leasing Arrangements
☑️ 12 months ongoing Franchise Model Advice
IT'S RIGHT FOR YOU IF ...
You want to develop a franchise model that reflects your business operation and your brand and you don't want a one-size-fits-all cookie-cutter franchise model with standard fees and royalties.
**We will also work with your accountant or financial adviser when developing your franchise model.
STARTING AT $12,500 plus GST
We prepare a custom franchise agreement (which reflects your franchise model), compliant disclosure document and associated agreements.
What you'll get:
☑️ Franchise Disclosure Document
☑️ Franchise Agreement
☑️ Key Facts Sheet
☑️ Premises Agreement
☑️ Associated Documents
☑️ Introduction to Auditor for Audit
☑️ Application documents.
IT'S RIGHT FOR YOU IF ...
You want customised documents developed by a franchise specialist that reflect your business model, adequately protect your intellectual property, and minimise the risks involved in franchising.
You ALSO want to be able to discuss the completed documents with your lawyer, and make changes to the documents if you need.
STARTING AT $3,000 plus GST
Franchising is highly regulated and compliance doesn't stop with the preparation of legal documents and registration on the Franchise Disclosure Register. We can handle your ongoing regulatory compliance.
What you can expect:
☑️Marketing Fund Compliance Advice and Assistance
☑️Annual Disclosure Document Update
☑️Annual Franchise Disclosure Register Update
☑️Annual Franchise Agreement Update
There are a number of legal requirements to be complied with in order to franchise your business. We have set out the main requirements below:
It is recommended that you register a company to act as the franchisor for the franchise network.
It is recommended that you register a trademark before you franchise your business. If you register your trade mark you will have exclusive use to that trade mark in the classes in which it is registered.
A franchise agreement must comply with the requirements of the Franchising Code of Conduct.
In addition, if a franchise agreement is a standard form contract, it must not contain provisions that are unfair under the Australian Consumer Law.
The Australian Consumer Law and the Franchising Code of Conduct both include significant penalty provisions.
What is a Standard Form Contract?
What is a Franchise Agreement?
A Disclosure Document must be in the form prescribed by the Franchising Code of Conduct and contain the information required by the Franchising Code of Conduct.
Understanding Franchise Disclosure Documents: A Comprehensive Guide
A Key Facts Sheet must be in the form prescribed by the ACCC, and must contain a summary of the information provided in the disclosure document.
Before a franchisor enters into a franchise agreement with a franchisee, a franchisor must be registered in the Franchise Disclosure Register.
What is the Franchise Disclosure Register?
You will need to open a separate account with a financial institution for advertising and marketing payments made by franchisees.
On average the Franchise Development Process (including the development of the franchise model and the preparation of the franchise documents) takes 60 to 90 days.
This will be dependent on a number of factors, including:
Once the franchise documents are prepared you will be able to commence offering franchises for sale.
In addition, once you have registered on the Franchise Disclosure Register you will be able to enter into your first franchise agreement.
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