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  The Franchising Code of Conduct attempts to enhance Franchisee rights. Franchisees have had enhanced support under the Franchise Code of Conduct since 2015: 1. Franchisors must provide a short information for sheet to intending franchisees which gives an overview of the risks and benefits of Franchising.  The...

 

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

Franchise disputes must be resolved in a particular way. Franchisors who are not prepared to be nice, should beware! There are good reasons why a franchisor should listen carefully to their franchisees and make genuine attempts to resolve any  franchise dispute.
A franchise agreement entered into on or after 1 October 1998 must provide for a complaint handling procedure that complies with Part 4 of the franchising code of conduct.
The Franchising Code also obliges both parties to act in good faith.  In order to decide if the parties have acted in good faith a court will look at whether the parties have acted honestly, and for genuine reasons and whether each party has cooperated to try to achieve the objective of the Franchise Agreement.

A local barrister recently published a paper which is of assistance for anyone wanting to understand Family Provision Applications. Family Provision Applications come about as a result of section 41 of the Succession Act Queensland.  Although this article explains section 41, first, please read the section in full: "If any person (the deceased person) dies whether testate or intestate and in terms of the will or as a result of the intestacy adequate provision is not made from the estate for the proper maintenance and support of the deceased person’s spouse, child or dependant, the court may, in its discretion, on application by or on behalf of the said spouse, child or dependant, order that such provision as the court thinks fit shall be made out of the estate of the deceased person for such spouse, child or dependant." You should notice that the application may be made, if a deceased person does not adequately provide for a spouse child or dependant. There are two important aspects to a Family Provision Application:
  1. a failure to adequately provide and
  2. only a spouse, child or dependant is entitled to claim.

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.

The Full Court of the Federal Court handed down a decision this year that has the potential to affect Business people who might not consider themselves involved in a franchise relationship. The decision also places in doubt the extent to which a Franchisor must go, when undertaking the process of issuing a disclosure document.  We believe that this process must be dictated by the particular circumstances of the

Do you lease premises for your business? Many business owners do not realize that when they sell their business and assign their lease, they may remain liable to the landlord for many years after the assignment.  If the buyer (the new business owner) can't pay the rent then the landlord may come looking for the previous tenant to cover the loss.  Is that you?

Many leases actually provide that an assignment of the lease does not release the previous tenant from liability to the landlord. Don't despair!  Read to the end of this article where we make reference to some legislation that may assist if you are a retail shop tenant.