Franchising

Franchising has become a popular business model in Australia, offering opportunities for both established businesses looking to expand and entrepreneurs seeking to start new ventures. At Fresco Law, we specialise in navigating the complex legal framework and providing franchising legal services to support our clients’ success and compliance.

Key points To know

1. In a typical arrangement, the owner of a brand or product (Franchisor) provides licensing and usage rights to dealers (Franchisees) for a fee. Franchisees usually receive exclusive rights to operate the franchise in a specific geographic area and receive support for marketing, branding, and operations from the Franchisor. The details of what each must do is set out in the franchise agreement.
2. Franchising can encompass various business models, including Manufacturer- Retailer, Manufacturer-Wholesaler, Wholesaler-Retailer, Retailer-Retailer (classic business format franchise).
3. Franchising Code of Conduct (Code) is mandatory and specifically applies to the parties of a franchise agreement. It regulates franchising conduct in Australia, setting out rights and obligations for both franchisors and franchisees.
4. Other legislation will also apply to franchisors and franchisees. For example, it might be under a law that covers a broad variety of business types, such as the Competition and Consumer Act or the Privacy Act. However, those laws may also include franchise specific provisions such as the ‘franchisor liability’ laws introduced in the Fair Work Act.
5. The Australian Competition & Consumer Commission or ‘ACCC’ regulates the Franchising Code.

Whether you’re a business owner looking to expand your brand or an entrepreneur seeking a structured path to business ownership, franchising offers compelling opportunities. However, it’s important to understand the legal intricacies involved to ensure success and compliance.

Contact us today for a consultation to explore how we can support your franchising journey, whether you’re a franchisor looking to expand or an entrepreneur ready to embark on a franchise venture.