Australia has numerous industry codes and laws governing franchising. Industry codes are sets of enforceable rules and measures regulating the conduct of that industry. Franchising is regulated by the Franchising Code of Conduct (Code), together with the Australian Consumer Law (ACL). ...
Key Changes to Insolvency Event Clauses
A recent Federal Government regime commencing on 1 July 2018 may affect the operation of insolvency clauses in contracts entered into on and from 1 July 2018. The types of clauses that may be impacted are clauses allowing a party to terminate or change the operation of a contract if another party to that contract becomes insolvent. ...
Is A Company The Most Suitable Structure in The Current Tax Environment?
When starting a business or contemplating a significant investment, the first consideration is which entity should be used for the ownership of that business/investment.
Traditionally, a common structure for private businesses was a discretionary trust. In the current tax environment, we find a standard recommendation of many advisers (in some cases, to all clients) is a company owned by a discretionary trust. ...
What is in a Disclosure Document?
If you are considering buying a franchise, the disclosure document is a key part of the process that aims to ensure prospective franchisees can make an informed business decision.
Under the Franchising Code of Conduct, all franchise systems in Australia must maintain a disclosure document, which must be provided to prospective franchisees at least 14 days before entering into a franchise agreement. ...
What Should I do if I Receive a Breach Notice From my Franchisor?
Breach notices must be taken seriously because failure to act can put your business at risk.
Formal breach notices are generally issued once a dispute escalates and a conciliatory resolution cannot be achieved. However, this is not always the case because some franchisors may resort to issuing a breach notice straight away. ...
The GDPR Sees its First Lawsuits Filed
It took less than a day for the GDPR (also known as the European Union General Data Protection Regulation) to see its first lawsuit.
Coming into force on 25 May 2018, the GDPR is a new regulation aimed at enforcing stricter rules concerning the use of EU resident’s personal information, and on that same day, Austrian privacy activist Max Schrems filed lawsuits against both Facebook and Google for a total of $7.6 billion euro ($11.6 billion AUD) for allegations of coercion by the two companies. ...
SOAP: A Guide to Negotiation
A successful lawyer has to become an expert in negotiation. We thought it was unfair to keep this knowledge to ourselves, so we’ve compiled a handy list of negotiation techniques into SOAP. A good lawyer uses SOAP every day, which is why people think we’re slippery. ...
The Five Things You Can Do to Assist in a Smooth Transaction When Buying a Property
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: ...
Searching made easier with IP Australia’s new trade mark search engine
IP Australia, the government agency responsible for administering intellectual property rights and legislation in Australia has released their new search engine for trademarks.
If you are familiar with their previous search engine (ATMOSS), you are in for a treat. The new interface is simpler, more user-friendly and is teeming with new features to help make searches quicker and easier.
What is new?
- The layout
The new Quick Search features (in the “I am interested in …” section) now offer helpful tips and descriptions, assisting non-legal people to navigate and understand what and how to conduct appropriate searches.
The search page has also received a facelift bringing it in-line with the rest of IP Australia’s site creating a clean and cohesive website.
- Administering searches
The previous search engine required text regardless if your search related to word marks or logos/images. Now, you can search by text or images or even portions of text or portions of images.
If you need to know if the circle in the left-hand corner of your proposed logo is similar to another logo, the new search engine can provide you with these results.
- Displaying results
Even before you select search, the new search engine will provide you with the expected number of results. This small feature can help you refine your search and reduce your search time by removing the need for unnecessary clicks.
For example, if you enter a term and you see IP Australia will return over 2000 results, this is a good indication that you should refine your search with additional text (if appropriate).
- Class and Status breakdown
Following the trends of big data, IP Australia will now provide a breakdown of information related to the class and status of your search.
For example, if you search for trademarks relating to the ...
What The 7-Eleven Scandal Means For Franchisees In Australia
For Franchisors: What Are My HR Responsibilities To Franchisee Employees In Australia?
The employee underpayment scandal and subsequent investigation by the Fair Work Ombudsman into retail convenience chain 7-Eleven has prompted the franchise industry to scrutinise the responsibilities franchisors owe to franchisee employees in Australia.
Are franchisors responsible for the actions of franchisees?
Under the Franchising Code of Conduct and under the typical franchise agreement, franchisors are not responsible for the actions of franchisees towards their employees. Franchisors and franchisees are legally and financially independent parties.
In essence, a franchise agreement is an agreement that allows a franchisee to carry on their own independent business in accordance with the franchisor’s model. Franchisees are obliged to run their own business, while at the same time abide by the principles of uniformity of the system regarding the products or services offered in their businesses.
Franchise agreements will commonly provide that franchisees are responsible for complying with industrial relations laws by paying employees the correct award, tax and superannuation.
The 7-Eleven payment scandal case study
In response to the employee underpayment allegations, the franchisor of 7-Eleven established an independent investigation panel, introduced changes to its business model and made commitments to provide compensation to underpaid franchisee employees. The franchisor’s response to the situation might be distinguished from how many other franchise systems might react because the 7-Eleven business model provides a profit share arrangement between the franchisor and its franchisees.
In most franchise systems there is no profit share, but the franchisor receives a regular franchise fee from franchisees, which may be a set royalty or an amount based on the franchisee’s performance. In the usual case, the franchisor is removed from the day-to-day running of the ...
