How to get out of a franchise

Written by rouse_admin on December 14, 2017

By Luke McKavanagh, Peter Rouse and Jashan Singh.

A franchise agreement is a legally binding commitment for the term of the franchise with restrictions on exiting early. Franchisors and franchisees must follow different steps if they believe they have grounds to unilaterally terminate the agreement. This will always depend on the circumstances.

What can franchisees do to end the franchise agreement?

Franchisees may wish to end a franchise agreement early for a variety of reasons. The business

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Unfair contract terms for small businesses: ACCC v JJ Richards

Written by rouse_admin on December 3, 2017

This time last year, the protections against unfair contract terms were extended under the Australian Consumer Law (ACL) to include standard form contracts involving small businesses.

A ‘standard form contract’ is generally a pre-prepared contract which offers the same or similar terms to all consumers, and is often utilised by larger businesses to improve efficiency.

In conjunction with the new laws surrounding standard form contracts, the ACCC has ramped up its efforts to investigate businesses relying upon unfair contract terms. This recently

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Is my Company Constitution tax effective?

Written by rouse_admin on December 3, 2017

Many will think of the Constitution of their company as a predominantly commercial document setting out the powers and procedures for the making of decisions by directors and shareholders, and the rights attaching to shares in respect of dividends, voting and winding up.

As far as tax is concerned the main focus is to allow for different classes of shares.

However, the content of the Constitution has an impact on the tax results in at least three important ways:

Super contributions for directors;
Differential

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CREDITOR’S STATUTORY DEMANDS: 21 DAYS IS 21 DAYS, REGARDLESS OF CHRISTMAS & NEW YEARS PERIOD!

Written by rouse_admin on November 29, 2017

The Supreme Court of Queensland has reaffirmed the law that a debtor only has 21 days to file and serve an application to set aside a creditor’s statutory demand, regardless of whether the Christmas/New Year period that falls within the 21 days.

Earlier this month, the Supreme Court handed down its decision1 in an application by J&K Homes Pty Ltd, who had been served with a creditor’s statutory demand by the creditor, Evans Lawyers

The creditor’s statutory demand was served on the

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Third line forcing – a new relaxed approach

Written by rouse_admin on November 24, 2017

Changes to legislation usually tighten existing regulations. Recent changes to the provisions of the Competition and Consumer Act 2010 (Act) covering third line forcing are a pleasant departure from this norm.

Third line forcing is a form of exclusive dealing, where a business will only supply goods or services, or give a particular price or discount, on the condition that a person buys the goods or services from a nominated third party. If the person does not comply with the condition,

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How do I get value from a lawyer?

Written by rouse_admin on November 15, 2017

A lawyer can seem like an unnecessary expense when buying a franchise with so many other costs to consider. Remember that buying a business is one of the biggest decisions you’ll make in your life. Legal advice should be considered as an investment. Like any investment, there are a number of key ways to secure a good return.

1. Experience

Find a lawyer experienced in franchising who handles franchise-related issues on a daily basis. A specialist will know what to look for,

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Do you own your own name?

Written by rouse_admin on November 14, 2017

A lot of time, effort and money goes into branding a business – coming up with the name, designing a logo, generating marketing material, etc.

Most people will do the usual business, company and domain name searches, and if the name is available, they register.  This is certainly a start, but this isn’t where these enquiries should end.

Why isn’t a business/company/domain search sufficient?

These simple search functions tell you whether the exact name you’ve punched in is already taken. They don’t tell

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On-selling your franchise – what you need to know

Written by rouse_admin on November 8, 2017

Like any business, once you establish your franchise the ideal goal is to build goodwill then on-sell it in the future for a profit. Whilst this may not be your short-term goal, it should nevertheless be kept in mind.

A franchise is an investment. So long as you have a franchise agreement in place you will have the right to sell your business and the franchisor cannot unreasonably withhold their consent to the sale. Like any business, the more profitable and

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The Five Things You Can do to Assist in a Smooth Transaction When Buying a Property

Written by rouse_admin on November 1, 2017

Looking to buy? It doesn’t matter if it’s your first home, an investment or if you have done it a dozen times, it’s a big deal.

Here are the top five things you can do to ensure your purchase runs as smoothly as possible:

1. Forward us a copy of the Contract before you sign:

It is extremely important that you know your rights under the Contract and the critical dates and conditions contained in it. We normally suggest inserting building

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How to handle renewals with a difficult franchisee

Written by rouse_admin on October 24, 2017

This Article was previously published on the Inside Franchise Business website.

How to handle renewals with a difficult franchisee

Entering a Franchise Agreement (Agreement) with a franchisee is a commitment for the term of the franchise. Dealing with a difficult franchisee can be problematic when locked into a contract and trying to maintain a business relationship. Whether it’s a clash of personalities or contrasting business values, a franchise relationship can easily become strained.

A “difficult” franchisee can range from someone who frequently questions your

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