business lawyer Tag

 

Even before a buyer obtains legal or accounting advice, a prospective Franchise Buyer should consider our Franchise Purchase Checklist of items.  This will save time and money and ultimately result in a better decision. We have set out some of these checklist items below:

  1. Research - Undertake some research to ensure that you understand the Franchising Industry and how it

Did you use the "out of office assistant" to notify people that you were away during the Christmas Break?  Ironically that automatic reply may be proof that you received an email that, you did not in fact receive.  Proof of receipt by the receiving system may be enough to show receipt by you.  We are governed by both the contracts we sign but also by contract law.  The contract does not stand by itself in a vacuum.   Contract Law affects all of our dealings with each other.  If you are entering into a contract of any kind you should see us first for a fixed fee quote.  Contact Riba Business Lawyers The problems that we can experience with email notices are an example. There are legal problems associated with using email to make contracts and futher problems are associated with issuing notices by email under a contract.  Those problems relate to
  1. whether an email notice is a valid written notice and,
  2. the timing of receipt by the intended recipient. Is the email received when it is received to, the server, the computer or when the recipient reads it?  Many contracts specify required time frames. If an email is used then it is essential that the time of receipt can be identified.

There are lots of opportunities for things to go wrong when drafting a lease but, in these three situations the consequences are particularly unpleasant.1. Failure to obtain a personal guarantee. Most leases are signed in the name of a company. If a tenant manages to get a lease in the name of a two dollar company and the requirement for a personal guarantee is forgotten then

A discretionary trust is a great way to separate different assets and protect these from business risk.  A discretionary trust works by separating "ownership" from "control".  By using a trust you may ensure that your personal assets are not put at risk.  Trusts are based on legal technicalities, so it is necessary to take care, simple technical failures in the management can undo the protection that a trust offers.  Too often we find that advisors do not take care to ensure that the arrangement actually works, or having set up the trust properly, over time the original intention of protecting the asset is forgotten.  Please read our story about Ralph to see how the most carefully constructed trust will not offer protection when improperly managed.

Riba Business Lawyers Most people think that businesses have to register a business name.  They are not correct.  You can always trade using your own name or your company name and it is not necessary to separately register a business name. Of course there are some rules that must be followed if you chose to do this. Firstly you must trade using your full name.  In the case of company this means using all of the name of the company and this includes the end part of that name.  For example a company called The Groovy Herb Pty Ltd must in all documentation signage etc. include the whole of that name which means writing "Pty Ltd" on everything.

Riba Business Lawyers

Have you ever wondered whether licensing or franchising is the best model to grow your business?  Many people wanting to avoid the cost and regulation of franchising will consider licensing as an alternative. But is licensing your business model really an alternative to franchising? What is licensing anyway and what is the difference between a franchise and a licence?

Firstly you cannot convert a franchise to a licence simply by changing the name at the top of the document.  The label given to the arrangement has no influence over the legal effect of the arrangement.  Franchising is just a form of licensing.

Whether the relationship that you wish to establish is really a franchise or a licence can be determined only in one way.  The Franchising Code of Conduct defines certain arrangements as a franchise.  The code provides that if certain ingredients are present then a franchise exists.

A new national business names registration system commences on 28 May 2012. The national register of business names will replace the existing state and territory registers. The new system will be administered by Australian Securities and Investments Commission (ASIC) Benefits of the new national register The national register will offer some advantages to Queensland business owners:
  • The national system eliminates the need for registration in more than one state.
  • The new system will allow for online registration and renewal. Online payment options will also be available.
  • Business name registration will happen simultaneously with the registration of an Australian Business Number.
  • There may be a reduction in fees in Queensland

Almost every commercial lease will provide that before a lease can be assigned, the consent of the landlord must be obtained.   If  you have commercial premises associated with your business there are some very good reasons to make sure that the assignment of the lease is properly handled. We recently acted for a commercial tenant.  This client came to us with a big problem, which had only become obvious to them a year after the date of the sale of their business. The commercial tenant had sold their business a year earlier and had assigned the lease of the business premises to the buyer.  Things did not go smoothly. The landlord set out the conditions upon which consent would be given.

Going to court is expensive.  It is so expensive that many commercially minded people would rather pay someone money that is not owed, or walk away from money that is owing, just to avoid legal costs. While some business people take this practical approach, others want to stand up for the principle of the matter.  Having principles can however be very expensive. It is true that because legal costs are high, even a win may feel like a loss.  Legal costs are sometime higher than the value of the dispute. Lawyers have a saying that "costs follow the event".  In other words, normally the winner of legal proceedings will receive an order that their costs should be paid, by the losing party.  We mention some exceptions below. Here we should pause to think about what this means: