Franchising

Franchising Update Disclosure Obligations 2019

Introduction Anyone who has a passing interest in franchising will know that the Franchise Sector is under scrutiny.  This article focuses on three issues where the Disclosure Obligations of Franchisor’s have been under the spotlight. Fairness in Franchising – Marketing Fund Review The recent parliamentary inquiry in to franchising “Fairness In Franchising” disclosed 31% of …

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Franchising Update: Jump Swim School, The ACCC and Freezing Orders. What Now?

Introduction All Jump! Swim School franchisee need to be aware of the recent Federal Court decision involving the Jump! Swim School (Australian Competition and Consumer Commission v Campbell [2019] FCA 886 (7 June 2019)  at http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA//2019/886.html). Freezing Orders Justice O’Bryan has made orders freezing the assets of various entities involved in Jump! Swim School (called …

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Franchising Update – Marketing Funds When the Franchisor Goes Bust

Introduction Most Franchise systems require a Franchisee to pay a variety of fees. In addition to the Initial Franchise Fee and on-going royalties it is usual for a Franchisee to be required to pay a Marketing Levy or Marketing Fee. The Marketing Levy varies from a fixed amount to a levy based upon a percentage …

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Unfair Contract Terms – Small Business & Franchise Agreements

Under the Australian Consumer Laws (the “ACL”) there are laws prohibiting unfair contract terms in consumer contracts.  From November 2016, the unfair contract regime will now extend to small business contracts. A “small business contract” is where the contract has the following features: The amount payable under the contract is less than upfront $300,000 or $1,000,000 …

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"What is a Franchise Agreement?" – A reminder after Workplace Safety Australia v Simple OHS Solutions Pty Limited

I often receive calls from new clients seeking advice as to how they can expand their business.  Of those, I am often asked whether their plans may be a franchise. Often, there is a fear or concern about establishing a franchise given the perceived difficulties and regulation surrounding franchising in Australia.

Disclosure Documents – The Importance of Being Earnest and Current

Franchising, as a way of doing business, can be very financially rewarding. When things go wrong though, the source of the problem can often be traced back to the beginning, when the franchise was being set up. Amongst the number of important elements to consider, the franchisor needs to ensure that a Franchise Disclosure Document …

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