Archive for the 'Franchising Law' Category

16 September 2019

What can I do if I am in dispute with my franchisee?

We are seeing more and more high-profile disputes with some of Australia’s leading franchises as franchisees work together to challenge the imbalance of power often between the franchisee and the franchisor. High profile cases like Mortgage Choice, Retail Food Group, Ultra Tune, Nando’s and 7-Eleven have shed light on the fact that all is not […]

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30 April 2019

Finally, a clean-up of the franchising industry – is it long overdue?

A parliamentary inquiry into the franchising industry handed down its report in March. The report has made 71 recommendations, which if adopted, will see a significant change to how the franchising industry in Australia will operate. The bipartisan report was damming in its review and called for new laws and greater enforcement powers to the […]

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5 February 2019

Are you acting in good faith as a franchisor?

The Federal Court in a recent decision found one of Australia’s largest mechanical/automotive franchisees, Ultra Tune, was found to have breached its obligation to act in good faith to one of its Franchisees. Read the article regarding Ultra Tune here. It is the first time the Australian Competition and Consumer Commission (ACCC) has brought proceedings […]

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26 April 2016

Are you ready to franchise your business?

Setting up a Franchise system is not easy and straightforward. However, while initially overwhelming, once established and operating effectively it has great benefits and significant rewards. If you have been considering franchising your business, and you are not sure where to start, we recommend that you ask yourself the following questions: “Is my business profitable […]

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19 April 2016

The keys to setting up a franchise business

Once you have decided that franchising is the right option for your business, you need to consider the first steps for setting up a franchise system. It is essential to make sure the basis of any business arrangement is well thought out and structured. It is in everyone’s best interests to speak with a franchising […]

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30 May 2013

Unconscionable conduct in Franchising

The Australian Competition and Consumer Commission (ACCC) recently released a  “Business Snapshot” on unconscionable conduct to help businesses comply with their obligations under the Competition and Consumer Act. The ACCC’s paper has a direct bearing on franchisors. Case Study – “Hungry” Jack Cowin v Yum! Restaurants Unconscionable conduct is not a new issue in franchising. The most […]

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22 May 2013

What’s the difference between Franchising and Licensing?

I am often asked of the distinction between a “Franchise Agreement” and a “Licence Agreement” (Franchising and Licensing). What is a Franchise Agreement? The key distinction can be found in the definition of “Franchise Agreement” in the Franchising Code of Conduct (“the Code”). It states that an Agreement will be a “Franchise Agreement” if all of the […]

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9 May 2013

The Pie Face Franchise Dispute

Three franchisees of the fast-food chain Pie Face have threatened to launch legal action against the franchisor on grounds of being misled over costs and profits when they first purchased their respective franchises. The franchisees claim their trading figures during the first seven months of trading were totally different to those initially projected by the […]

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11 April 2013

Buying a Franchised Business

Franchised businesses differ from other businesses in a number of ways. They offer the ability to run your business using the franchisor’s “system” in a way that allows you to gain benefit from the name, marks, brand, image, and general “know-how” of a well established and generally more expansive organisation. Whilst operating a franchised business […]

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1 November 2012

Selling a Franchised Business

Selling your franchised business can be a complex and stressful exercise. The transaction tends to be more complex than the sale of a non-franchised business sale due to the third-party influence of the Franchisor, who under most franchise agreements will have the final say in whether or not your sale can proceed. In some circumstances, […]

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