What does it cost to have a franchise agreement prepared for my business?
Answered by Warren Scott from Mills Oakley Lawyers
A franchise agreement is just a contract. For a simple business model, and in particular where the contract can be simplified to a licence rather than a franchise agreement, the cost can be minimal (about $5,000). Often the expense arises when disclosure documents and other ancillary agreements are required as a result of the complexity of the business model. In my experience, when most businesses embark on a franchising model they are themselves small businesses who need to ensure that the cost of production of the initial agreement does not detract from their overall expansion plans (and the available capital to facilitate that expansion). An analysis of whether or not a simplified agreement is appropriate, has in my experience, been the important first step.
About Warren Scott
Warren Scott is the Partner at Mills Oakley Lawyers. Warren is a recognised expert in franchising law. He heads the Mills Oakley franchising team, which offers a premium service nationally. Warren advises both franchisors and franchisees.
You should always check independently that an ask an expert answer published on Franchise Business applies to your particular circumstances.
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