What is a franchise?
This is an agreement between a franchisor, who grants a licence of use, sell and develop a particular product, service or brand.
Although, the franchisee has a right to use any intellectual property owned by the franchisor, it is important to understand the licensing terms.
Once the licence is granted to the franchisee the franchisor promises to maintain they will need to adhere to maintain the franchisee’s business through:
Before buying a franchise
Before you enter into a franchise agreement make sure that the franchisor has provided you with franchise agreement. They must explain the risks that are involved and rewards.
They must also provide you with the documents listed below within 14 days before you sign the franchise agreement or make a non-refundable payment.
Some tips before signing the agreement:
The rights of a franchisee?
The rights fall under the Franchising Code of Conduct (Competition and Consumer (Industry Codes—Franchising) Regulation 2014).
The franchisee is allowed to terminate the agreement within seven days.
Furthermore, a franchisee is permitted to form an association, to associate with other franchisees if they choose and franchisees are also permitted to transfer the franchise to another party without the franchisor unreasonably holding consent.