Key issues with master franchises

Sarah Stowe

What are the key issues to think about when entering into a master franchise for Australia?

You need to have a well documented agreement that deals with both the master arrangement as well as any sub-franchising. Consideration of obligations under the Australian franchising Code also need to be taken into account. The Australian franchise Code is expected to change on 1 January 2015 and that will change the disclosure obligations of parties to a master franchise agreement. In addition to these considerations we recommend the end of term arrangements have regard to the commercial and legal issues that arise both for the master franchisee and the sub-franchisees.