Opinion

Franchising has been operating in one form or another for the past 40 years in Australia. It became a regulated industry under the Franchise Code of Conduct in 1998. The industry was regulated to protect individuals and small business operator (franchisees) by requiring mandatory disclosure of material information by franchisors…

We are often asked “What is the “f” word and what is the key differences between licensing and franchising?” On a very basic level, licensing and franchising both deal with the selling of certain intellectual properties, whether software, trademark, or business process and systems, to third parties. However, franchising, under…

Unless you are buying a single person operated business, when you buy a franchised business, like any business you are going to need to employ staff. Franchisees are subject to the same employment laws and have the same rights and responsibilities as any Australian employer. Being an employer in Australia…

Running a Franchise organisation has a lot more challenges than most businesses. You still need the same skills as any other CEO running a business in your Industry but you also have the challenges of managing the relationships with a diversified group of people that have all come from different…

In 2016 the way that a business enters into a “small business contract” will have to satisfy the proposed provisions for unfair contract terms set out in the Australian Consumer Law (ACL). These amendments are set out in the Treasury Legislation Amendment (Small-Business and Unfair Contract Terms) Bill 2015. In…

In the many years I have been involved in franchising, the amount of Franchisors that neglect or become complacent with the communication levels they have with their Franchisees never ceases to amaze me. Franchisors must seize every opportunity to communicate with their Franchisees as nothing builds a stronger team better…

So you enquired about buying a franchise and you have been sent a Disclosure Document? This is an important step- the Franchising Code of Conduct says you have to wait at least 14 days from receiving this document before you sign on the dotted line. The Disclosure Document is to…

How much of the purchase price should I borrow to buy a Franchise? Great question! My recommendation is to have at least 50% in cash, and not to borrow more than 50%. And the reason for this is simple. Let me give you an example. Before you go and buy…

“Due Diligence” is a term often used these days when requesting prospective Franchisees to conduct a thorough research process of the Franchisor’s business operations before making application to become a Franchisee. However in my opinion, due diligence applies equally to the Franchisor i.e. has the Franchisor conducted a satisfactory due…