If you are interested in franchising, then it’s important to learn the many processes involved in successfully entering this business agreement. There are many issues that should be handled by legal professionals to ensure you are protected throughout the process. While this business venture can provide a great opportunity to increase your income and become successful, there are certain risks involved if the agreements are not properly vetted. Be sure to retain the professional services of franchise lawyers in Sydney to be by your side during all of these important business transactions.
How Does Franchise Law Work?
A successful business owner may decide to expand their horizons and open up another branch of their business. Since it isn’t always possible to run both businesses, they open up their business to potential franchisees. In doing so, the business owner allows the new business person the ability to sell their products under their name while still receiving royalties and business income as a result. The person now running the second place of business creates a viable income for themselves as well.
To ensure that this arrangement is fair for everyone involved, there are certain standards that are incorporated into these agreements that are important to ensure a fair distribution of fees and royalties are collected and reported. Your legal representatives in Sydney are familiar with this type of law and know what to look for in the agreements. In most cases, there is a fee paid to the business owner, a one-time franchising fee that establishes the new business. In addition, reasonable royalties on the products sold are forwarded as well, with a comfortable profit left for the new partner.
The agreements may also contain detailed arrangements and permissions for certain use of the logos, equipment, signage, marketing and other aspects of the business that are permitted for the franchisee. This protects the business owner who wishes to maintain uniformity across the different locations. Customers who expect a certain level of service regardless of location appreciate this. Your counsel will be sure to look at each detail of the agreement to be sure that all laws are adhered to and that you are being treated fairly and given adequate compensation and fair use for your investment.
If Problems Arise
In the event that there are any disputes that arise during the agreement, it may be necessary for there to be legal intervention. In order to avoid heated disputes or misunderstandings, including legal counsel can be very helpful to iron out any differences before they become larger problems. Your lawyer in Sydney can look over your agreement for you and help clear up misunderstandings or negotiate better terms.
Renegotiating an agreement to expand upon the period of time or if the franchisee wants to end their business arrangement, it is very important to have legal representation during this time. With expert knowledge in the field, they can advise and guide you through delicate negotiations or help you make sound business decisions.