We have extensive experience in assisting local and global franchise businesses. 

We can help you:

• Set up a franchise
• Protect your franchise
• Set up franchises overseas
• Set up the required templates and documentation so that you can standardise your legal documentation across your franchise.

Question: I represent an overseas business wishing to expand a real estate franchise into Australia. Are you able to assist us, and are there any significant barriers to entry?  i.e are we required to have an Australian legal presence before we can franchise?  Thanks.  

Answer: Yes, for your query regarding establishing a franchise business in Australia.

In answer to your question, yes – we can certainly help you set up this type of business.  We have lots of franchising experience, with international franchise companies.

The usual model to establish an overseas franchise in Australia is to establish an Australian company, and grant a licence from the parent company (located overseas) to use and  “on-licence” the intellectual property, business systems and other information which constitutes the franchise system. We suggest that you seek advice from Australian accountants when setting up the appropriate corporate entity. There are some accountants who specialise in franchises. Please let us know if you would like us to provide you with some names of accountants who are experienced in franchising.

In Australia, franchisors are required to comply with Trade Practices (Industry Codes —Franchising) Regulations 1998 (“the Franchising Code”). This sets out all of the rules for operating a franchise, including disclosure and reporting requirements, marketing fund obligations and so on. The Code is relatively short and (for legislation) readable. Please click here to access the Franchising Code.

In summary, franchisors must provide potential franchisees with detailed information about the franchise, including the names and contact details for both current and past franchisees, as well as complete financial statements and profit and loss statements. Franchisors must also provide details of the stakeholders in the franchisor entity, as well as details of each director’s background and experience. The disclosure document must be updated annually. Also, franchisees are entitled to a cooling off period after the payment of a deposit or other commitment to purchase a franchise.

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