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Why you need to hire a franchise lawyer in Sydney

Franchising is the name of the game with businesses in Sydney and elsewhere in the world today. It is because franchising a popular brand seems to become an exciting way to start a business.

While franchising can be pretty exciting, it also has its fair share of legal pitfalls. And the best way to prevent legal problems from happening is to hire a franchise lawyer Sydney before signing on the dotted line. Hiring the services of a franchise lawyer Sydney is a must for everyone wanting to join the franchising business. Here’s why:

Provide a clear-cut franchise business choice

Choosing the best franchise business can be quite challenging. The availability of various businesses and brands for franchising can make the choice difficult. The process of choosing the right franchise needs help from a franchise lawyer. Franchise businesses come in different entities, namely:

  • C corporation
  • LLC or Limited Liability Company
  • S subchapter or S corporation

The choice of choosing the right franchise entity is determined by:

  • The way the business will be taxed
  • Your rights
  • Your set of liabilities

Provide FDD or Franchise Disclosure Document guidance and support

The Federal Trade Commission has outlined documents that have to be met by every potential franchisee. The document is quite thick, almost 200 pages, making it a daunting read for any layman.

However, knowing and understanding everything about the document’s content benefits both the franchisor and the franchisee. The document ensures that a franchisor will know his/her obligations once they sign on the dotted line. Failure to meet the requirements is grounds for termination of the agreement.

The franchisor, on the other hand, is provided brand protection from franchisees who fail to adhere to the SOP or standard operating procedures of the brand or business. This includes maintaining the required safety and cleanliness standards.

The FDD is a complex document that needs help and guidance from an experienced and reliable franchise lawyer.

Legal assistance when the franchise goes south

A potential franchise that goes south at the outset is not what you or everyone wants. However, the volatility of business transactions makes it possible for franchises not to work out. The things that can hinder the success of potential franchises include:

  • The business expenses are more than you can afford
  • The anticipated income is not realised
  • False information was contained in the selling/purchasing agreement
  • Changes in your personal circumstances
  • The poor location has made the business fail
  • The unsuitability of the franchise

Having a franchise lawyer in your corner is essential for the premature termination of a franchise agreement or being sued in court for franchise termination.

Experience and expertise in the franchising field

Hiring a franchise lawyer provides access to his experience and expertise in the franchising field. The things a franchise lawyer brings to the table include:

  • Any required paperwork such as the lease and disclosure document and the draft of the franchisee agreement is painstakingly reviewed before you sign.
  • Identify the red flags if any as well as know the things to look for in the franchise transaction
  • Provide you with the right guidance and information about the potential franchise business.

Signing on the dotted line should NEVER be done without first consulting with a franchise lawyer. Doing so is the smartest way to protect your interests.

Attwood Marshall are franchise lawyers in Sydney. Contact them to know more.


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