Franchised Business in Australia – Guideline for Beginner
Franchise Business Process in Australia
Buying a business is a big commitment. However, it may seem to be a popular option to buy a franchised business instead of building a brand from scratch. Each franchisor has its own process but overall, the franchise business process in Australia will be similar.
Firstly, an incoming Franchisee needs to fill out the application form for a Franchisor to review and approve. Next, the Franchisor’s Presentative will set up a meeting with an incoming Franchisee to discuss further details such as locations, finances and employment matters. Thirdly, a deposit may be required for documents to be issued. Finally, the Franchisor will normally have a checklist so the Franchisee can prepare all required items and have the final documents signed before the handover date.
Which Government body regulates Franchises In Australia?
Franchise Business is operated based on the Franchised Code of Conduct. The Code is a mandatory Code under the Competition and Consumer Act 2010. In line with the Code, the Franchise Agreement contract also operates under a wide scheme of legislation including the Australian Consumer Law, the Fair Work Act, the Australian Securities and Investment Act and so on.
What are the legal rights of a franchisee in Australia?
Under the amended Code, a Franchisee can request to review the Marketing fund expenses once a year. During the tenure of the Franchise Agreement, a Franchisee can seek for advice in various matters including accounting, legal and operation. The Franchisors are not obliged or bound to any advice but that they can guide you to the right direction. In case of early termination, each Franchise Agreement will list out the required steps namely a written notice within a period of time, handover date procedure, clearing on debtors and creditors and so forth.
Franchising is a multi-million dollar industry, Franchise Business Process and legal rights of a Franchisee in Australia are varied from time to time in conjunction with the Statute changes.
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Also Read:
Everything you need to know before entering a franchised business in Australia?
Franchise Business in Australia | Franchise Consultants in Sydney
