I’ve chosen a franchise business I’d like to purchase. What should I do next?
Answered by Katarina Klaric from Stephens Lawyers & Consultants
Before seeking your own legal advice on buying a franchise, the following is a useful checklist:
1. Obtain from the franchisor all agreements and the franchise disclosure document that the franchisor is required to provide franchisees or prospective franchisees under the Franchising Code of Conduct under the Trade Practices Act.
2. Do your research to assess its profitability.
3. Contact other franchisees regarding the support provided by the franchisor.
4. Check the total cost of buying the franchise.
Remember that you will need to provide financial information if you are financing the purchase through a bank.
For more information see Stephens Lawyers & Consultants' company page and follow the link to our website - see: “Franchising Flaws: Buyer Beware”.
1. Obtain from the franchisor all agreements and the franchise disclosure document that the franchisor is required to provide franchisees or prospective franchisees under the Franchising Code of Conduct under the Trade Practices Act.
2. Do your research to assess its profitability.
3. Contact other franchisees regarding the support provided by the franchisor.
4. Check the total cost of buying the franchise.
Remember that you will need to provide financial information if you are financing the purchase through a bank.
For more information see Stephens Lawyers & Consultants' company page and follow the link to our website - see: “Franchising Flaws: Buyer Beware”.
About Katarina Klaric
Katarina Klaric is the Partner at Stephens Lawyers & Consultants. Katarina has over 20 years' experience in franchising and intellectual property law. She is a member of the FCA.She has set up franchise operations in Australia for both local and international companies.
You should always check independently that an ask an expert answer published on Franchise Business applies to your particular circumstances.
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