Franchising

Franchising is a heavily regulated area of Australian business law. Armstrong Lawyers acts for both franchisors and franchisees, with the benefit of a combined commercial, property and disputes capability. The work is governed primarily by the Franchising Code of Conduct, a mandatory industry code under the Competition and Consumer Act 2010 (Cth).

For franchisors

We assist franchisors to establish and grow compliant franchise systems — drafting franchise agreements and disclosure documents, preparing operations manuals and brand guidelines, advising on territory and exclusivity, marketing fund arrangements, intellectual property protection and lease arrangements where franchisees occupy franchisor-controlled premises.

For franchisees

For prospective franchisees, the most valuable advice is given before signing. We review the disclosure document, franchise agreement, lease and key information statement, explain the practical effect of restraint, transfer, renewal and termination clauses, and identify the financial assumptions that need to be tested with the franchisee's accountant.

Renewal, transfer and exit

We act on franchise renewals, transfers (assignments) of a franchised business to a new operator, end-of-term arrangements and exits. Many franchise agreements impose strict notice periods for renewal and significant post-term restraints; getting these steps wrong can be costly.

Disputes

The Franchising Code provides a mandatory dispute resolution process and the option of mediation or arbitration. We act in franchise disputes about underperformance, breach of system standards, alleged misleading conduct prior to entry, terminations and restraint enforcement, both at code-mandated ADR and in court.

Related services

Commercial Law → — underlying company, trust and contractual structures used by franchise systems.
Business Sales → — buying or selling a franchised business.
Litigation & Dispute Resolution → — for franchise disputes that escalate to court.