Do you want to start a business without the hassle of starting from scratch? Franchising is a viable option. It already comes with an established business model, ongoing support, and brand recognition. Despite how success seems guaranteed, there are legal complexities that can be problematic when handled improperly. This is where expert legal guidance comes in handy. Working with a franchise team at Velocity Legal can help ensure long-term success and protect your investment. Why is a franchise lawyer essential?
Understand complex franchise agreements.
A franchise agreement is a legally binding contract between the franchisee (you) and the franchiser. Like most business contracts, it’s often long, detailed, and filled with legal jargon that an ordinary person can barely understand. A franchise lawyer can help you navigate through the agreement and break down the fine print.
Ensure compliance with franchise law.
Franchisers and franchisees are governed by the Franchising Code of Conduct in Australia. It outlines the legalities of how both parties should interact. It’s designed to address problems that may arise due to the power imbalance between parties. Most of the time, franchisees don’t have a say in major decisions that a company makes that may affect the franchising business. Your lawyer can protect you from such problems, protecting your interests while ensuring your operation is within legal boundaries.
Negotiate favourable terms.
As previously mentioned, power imbalance is a common problem in a franchising business. You need a lawyer to negotiate favourable terms on your behalf. You don’t want to get into a business and be slapped with excessive fees, unclear exit clauses, and restrictions to operate.
Handle disputes and legal issues.
Agreements and disputes can still arise even when a well-structured agreement has been established. You want to be protected against unfair terms and treatment. It’s even more important to resolve issues quickly and effectively, something a franchise lawyer can help with.
Guidance for expansion.
It’s natural to want to expand your business if the first franchise turns out to be successful. From the get-go, a franchise lawyer can set you up for long-term success. They’ll draft legal documents and structure franchise models that will work in your favour. They’ll provide advice on intellectual property issues and assist with franchise disclosure documents.
Franchising is a highly beneficial and profitable business opportunity. As long as you can navigate the legal complexities and negotiate properly, you have a higher chance of success. It’s important to partner with a specialist firm to protect you at every step of the journey. Consult with specialist franchise lawyers at Velocity Legal for a more secure future in the franchising landscape.
