As part of our service, we provide a comprehensive franchise documentation pack. As well as an overview of the franchisor, it will include a basic summary of the business to be franchised that will explain what exactly franchising is as well as how it works. This one page summary will also give you an indication of the capital required. Other details included in the basic summary include the franchise fees, royalties and advertising levies, plus the cost of reselling the franchise.
There are various forms of franchise documentation and all are a very important part of any potential franchise business opportunity. Our franchise documentation pack will also provide you with the franchise agreement and disclosure document.
The most important piece of franchise documentation you will come across in Australia is the franchise agreement. This is the legal agreement between the franchisor and franchisee and is designed to achieve three crucial objectives.
Firstly, it must contractually bind the franchisor and franchisee as well as providing an accurate reflection of the agreed franchise terms. Secondly, it must protect the franchisor’s intellectual property. Lastly, it should set out all the rules to be observed by both the franchisor and franchisee.
The second most important piece of franchise documentation is the disclosure document: under The Franchising Code of Conduct in Australia, anyone entering into a franchise agreement in Australia needs to be given a disclosure document.
A franchise disclosure document outlines the details of the franchise opportunity clearly and concisely, in a way that complies with the Franchising Code of Conduct, and is an important part of the Australian Franchising Code of Conduct. Before any franchise agreement is signed, a franchisor is required to hand over a copy of the disclosure agreement, the final version of the franchise agreement, a copy of the code of conduct, plus copies of other relevant documents pertinent to the franchise; for example leases.
The purpose of a disclosure document is to provide detailed information about the expected financial turnover of the franchise and is normally provided before any franchise agreement is signed. It can be provided to a prospective franchisee, or an existing franchisee who is considering extending the length of their franchise contract.
We can assist and advise you with all the necessary franchise documentation you are likely to encounter and we can ensure that you fully comply with all aspects of The Franchising Code of Conduct in Australia.