Franchising is now a well established and well-respected system of assisting people into business and improving their chance of success. There are far fewer failures in a good franchise system than there are in non franchise businesses. The growth of the franchise industry in Australia is increasing yearly at a great rate.
If you want a business that has an established and proven record of success, then a good franchise is just what you need.
On the other hand, a bad franchise is worse than worthless because it can cost you your life’s savings. For assistance in determining whether a franchise is a good franchise or not, see KL Legal.
For the Franchisor
KL Legal has had over 20 years experience in franchising and is well placed to prepare the necessary franchise documents and disclosure documents. Severe penalties apply if the documentation does not comply with the Franchising Code of Conduct. “Get it right the first time” — see KL Legal first.
KL Legal can ensure that your intellectual property is properly protected and registered.
KL Legal has experience in the mediation of franchise disputes.
KL Legal can help you with the day to day running of a franchise system. We can assist you with the correct issuing of default notices, and make practical suggestions to make your job easier.
Your disclosure documents need updating at least annually. We find that even when experienced franchisors update their own disclosure documents, that non-compliant errors creep in, and that they benefit from having us proofread the revised disclosure documents before use.
For the Franchisee
The Advantages of Franchising:
It normally takes years of experience to learn how to run a profitable business. A good franchisor however has already done the hard work for you by working out the formula for success.
Part of the problem with a new business is simply getting known in the marketplace. The franchisor already has the franchise name out there.
A good franchisor monitors the health of your business and can often correct a problem before you even know that you have one. It is as though you have an “in-house” business consultant. If you were in a non-franchise business, you might not recognise the problem, or be reluctant to contact a business adviser because of the perceived expense.
The Disadvantages of Franchising:
An unscrupulous franchisor is not selling franchising, he is merely selling franchises. A good franchisor makes his money from the success of his franchisees and often the purchase price of the franchise is relatively low. An unscrupulous franchisor makes his money from selling franchises at an inflated price and offering little or no support.
Even in a good franchise, you must be prepared to give up your right to do whatever you want in business so that it complies with the vision of the franchisor. This obviously is harder for some people than for others.
Overall, we believe that the advantages of a good franchise far outweigh any disadvantage.
Why not contact us for an appointment.