The fairly dramatic facts surrounding the termination of a ‘Couriers Please’ franchise in a Victorian case last year shows the operational challenges of managing franchisees. It also illustrated one of the lesser used grounds of immediate termination of a franchise – on the basis that the franchisee is operating the franchised business in a way that endangers public health and safety (Clause 29(1)(f) Franchising Code of Conduct).
On 15 September 2017 the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 took effect. It makes important changes to the Fair Work Act 2009. These changes potentially affect all businesses but in particular those in franchising or licensing or distribution.
If you are looking to buy a franchised business which operates from any premises other than your home, you will need a lease. For retail businesses location is critical and it is likely your franchisor will control the negotiation process and require that either the lease be in its name with a sublease or licence granted to you, or allow the lease to be in your name but with some conditions attached.
If you are buying a retail franchise business, the lease is a critical element. Here are 10 questions to ask about your lease...
Being released in cinemas this week, The Founder is the story of how Ray Kroc built the McDonald’s empire.
Michael Keaton plays Kroc and portrays him as an unlikeable, ruthless character who steals the ideas and even words of others without shame. He takes the brand concept and systems originated by Mac and Dick McDonald and passes them off as his own work. In doing so he grows their small operation to one across the US and internationally.
If you are a franchisor in Australia you will know that you must update your disclosure document every year to comply with the Franchising Code.
Welcome to the August 2014 edition of the Holman Webb Lawyers Franchise Bulletin.
This year we have seen the delays and uncertainty continue to surround the introduction of the changes to the Franchising Code of Conduct including the new good faith obligation and monetary penalties for breaches. Click here to read more.
In 2010 there were a number of changes made to the format of the franchising disclosure document, including some new sections to be completed, commencing from 1 July 2013.
In the United States, the issue of the competition between ‘bricks and mortar’ retail franchises and the online channel conducted by the franchisor has taken front place as the new form of “encroachment” claim made by franchisees in recent years. In Australia our mandatory franchise disclosure document under the Franchising Code of Conduct requires prior disclosure to a franchisee of information relating to the franchise “territory”, but it refers to a physical geographic territory only and does not address encroachment through alternative channels of distribution, such as e-commerce. This has been remedied with the proposed new form of disclosure document due for commencement from 1 January 2015. (Note the new form is not law yet).