Franchise Lawyers in Cairns

It is important to seek legal advice in order to create a franchise agreement. As this is a legally binding document between the franchisor and the franchisee, it is vital that both parties have a clear understanding of their rights, responsibilities, and obligations.

In addition, if you are seeking to turn an existing business into a franchise, you will need to conduct research, develop a business model and potentially seek financial advice. This is to ensure you can disclose the appropriate documentation to any potential franchisee.

Franchisors often require a personal guarantee. In this instance, when you sign a personal guarantee as a franchisee you are becoming a guarantor. This essentially indemnifies the franchisor against any losses, which means you will be personally accountable for the payment of any franchise fees in the agreement.

Personal guarantees are designed to protect the franchisor against losses. Whether you are a franchisor or franchisee, you should always seek legal advice from a franchising expert prior to signing one.

It is important that you seek independent legal advice before entering into a franchise agreement. Regardless of whether the value of the franchise is high or low, these contracts stipulate what a franchisee is responsible for and the extent of the franchisor’s obligations.

Most franchise disputes occur when either party does not fulfil or understand their obligations as part of the franchise agreement.

We recommend you seek legal advice:

• Prior to signing a franchise agreement
• During any cooling-off period
• If any variations are required
• When ending the agreement.

Talk to our franchise lawyers in Cairns to ensure you understand your rights and obligations.