Australia: Franchising

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Part 6: Independent Legal Advice For Franchise Buyers: Negotiation And Committing With Clarity
By the time the evaluation is done, the remaining task is to commit well: to take advice that is substantive rather than a formality, to ask for clarification even where negotiation is unlikely, and to carry the disciplines of due diligence into the operation of the business. None of it removes risk, but together these change the character of the risk you accept.
Australia Commercial
Whelan Lawyers
Article
Part 5: The Franchise Premises Lease, Capital Expenditure, And Exit Exposures Overlooked By Buyers
Buyers tend to study the start of a franchise relationship in detail and give far less attention to three exposures that sit slightly out of view: the premises the business trades from, the capital the franchisor can require you to spend after you have signed, and the provisions that govern how the relationship ends. Each is capable of reshaping the economics of the deal, and each is easier to address before you commit than after.
Australia Commercial
Whelan Lawyers
Article
Part 4: The Franchise Agreement And The Code: Terms That Shape Your Market And Margins
If financial due diligence tests whether the opportunity adds up, the franchise agreement tests what you are actually agreeing to. Around that agreement the Code builds a framework of protections, and within it sit a handful of clauses that will shape your market and your margins for the life of the relationship. Both deserve closer reading than they usually receive.
Australia Commercial
Whelan Lawyers
Article
Part 3: Franchise Financial Due Diligence: Building Honest Numbers Before You Commit
Every franchisor presents its system in the best light, and the strong ones have good reason to. The task for a prospective franchisee is to use financial due diligence and not to second-guess that optimism but to translate it into numbers that reflect your situation, your site and your appetite for risk. A franchise that holds together on conservative numbers is one worth committing to; a franchise that works only on optimistic ones is not, however appealing the brand.
Australia Commercial
Whelan Lawyers
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