Drafting Franchise Agreements
A well drafted franchise agreement will:
- be in as plain language as possible;
- reflect your business systems and structure;
- comply with the provisions of the Franchising Code of Conduct;
- set out the commercial terms between the parties (such as the fees to be paid);
- protect the value of the brand and intellectual property (including online);
- be consistent with the disclosure document;
- not contain terms that are unfair or unconscionable;
- anticipate changes within the franchise system over the term of the franchise agreement.
We have developed and drafted hundreds of customised franchise agreements. We do not use generic templates.
We understand franchising, which enables us to draft franchise agreements which reflect and support your business structure and goals both now and in the future and which protect your interests.
Our Fixed Price Packages
If you decide to franchise your business we offer a number of fixed price packages.
Basic Franchise Package
Our Basic Franchise Package includes the following:*
- a non-discosure agreement;
- a custom template franchise agreement;
- a template disclosure document;
- associated documents including guarantees, covenants and other deeds;
- an instruction/application form which, when filled out will include various consents and authorities necessary for the preparation of a disclosure document and franchise agreement.
Our Basic Franchise Package also includes all meetings, telephone calls and other work associated with:
- designing, drafting and customising the franchise model to the extent necessary to prepare your franchise documents;
- drafting and customising the template franchise agreement, template disclosure document and other franchise and related documents.
*Subject to terms and conditions
Basic Plus Franchise Package
Our Basic Plus Franchise Package includes the following:*
- all of the work included in the Basic Franchise Package;
- unlimited advice and consulting during business hours in relation to any aspect of franchising your business and the development of the franchise business and model for the period of three months following the signing of our terms and conditions.
*Subject to terms and conditions
Premium Franchise Package
Our Premium Franchise Package includes the following:*
- all of the work included in the Basic Franchise Package;
- unlimited advice and consulting during business hours in relation to any aspect of franchising your business and the development of the franchise business and model for the period of two years following the signing of our terms and conditions.
- working with you to develop the franchise business model and assistance with developing the franchise for the period of two years following the signing of our terms and conditions.
The advice that we provide on an ongoing basis under this package includes matters such as:
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- ongoing business and franchise model development;
- protection of intellectual property and confidentiality;
- upfront and ongoing fees including royalties;
- upfront and ongoing advertising and marketing fees;
- transfers of franchises including transfer fees;
- any other fees and costs that might be charged;
- the process of granting a franchise;
- franchise exits;
- whether and to what extent territories should be used and the various forms of exclusivity of territory;
- protection of goodwill and non-compete provisions; and
- supply arrangements and exclusive dealing issues that may arise (taking into account the Competition and Consumer Act).
*Subject to terms and conditions
What terms are usually in a franchise agreement?
Under the terms of a franchise agreement a franchisee is usually granted the right to use your name, trade mark and system, within a certain defined territory (or site) for a certain period.
In addition the franchise agreement will contain provisions protecting your business interests and your intellectual property.
The franchise agreement will also set out the franchisee's obligations such as:
- the goods or services which may be provided;
- the fees to be paid;
- the manuals to be followed;
- the standards to be maintained; and
- the way that the business is to be promoted.
