Posted by Elizabeth Gore-Jones
on 12 February 2015
This is a list of some considerations in determining if your business can be franchised:
1. How old is the business?
A rule of thumb is that the business should be operating for at least 3 years before it is franchised.
Whilst this is not set in stone, it does allow for the business owner to:
(a) determine if the business is a success;
(b) determine if the business earns sufficient money;
(c) make alot of mistakes in operating the business and find solutions for those mis...
Posted by Elizabeth Gore-Jones
on 11 February 2015
We once acted for a franchisor who had a franchisee with unpaid royalties of about $7,000.
No big deal right?
The franchisor's attitude was one of annoyance but it did not want to take action to pursue the debt and the issue festered beneath the surface for the best part of a year. That is, until the franchisee had negotiated extraordinarily favourable lease terms for a new premises located within a highly sought after retail precinct.
Then, all of a sudden, the...
Posted by Elizabeth Gore-Jones
on 9 February 2015
I always describe a Prior Representations Deed to franchisors as a "cover your butt" document.
When explaining a Prior Representations Deed to franchisees I advise them to take the deed very seriously.
The deed is all about misleading and deceptive conduct.
For Franchisors
Generally, this deed should form a part of your franchise suite of documents. Sometimes it will be included in the franchise agreement itself.
I am not a fan of including the deed in t...
