Franchising

How to franchise

This is what happens when the business is not your original idea but rather an extension of a major brand based on an agreement between both parties. Franchising has its own peculiar rules.  Franchising makes it possible for a business to operate using the brand of an established business, which means you can sell products or deliver services of that established brand in exchange for payments to the brand. This is a great alternative to establish a unique venture.

If you are planning on franchising, it is important to consider it and ensure that you follow the correct procedures. The primary law guiding franchising in Australia is the Franchise Code of Conduct. Understanding the franchise is totally different from all other businesses, it is very restrictive, and you’ll have less control on the decision making or even what you sell or offer as most franchisors will have a say on this. There are also the costs to consider. The cost of a franchise includes;

  • The upfront fees,
  • Cost of establishing the business and maintaining it,
  • Any other significant expenditure.

Compliance with Franchise code

Everyone involved in a franchise deal must comply with the code, and it basically regulates everyone’s actions. Being familiar with the code means you will enter the agreement with full knowledge, and the code also provides a dispute resolution mechanism for any issue that may arise. The Franchising Code only provides for the minimum standards so you may still need legal, accounting, or business advice before entering the agreement.

Buy a franchise

This means you are buying the rights to run a business under an established brand. There are rights and obligations on this, and you should do your research to know everything about the franchise and what could happen in the course of doing business. Once entered, the agreement is binding, and you have committed yourself to run a business in line with the requirements of the franchise operating manual and franchise agreement. Before entering franchisor will provide you with an information sheet that details the rewards and risks of franchising. The agreement gives you the right to run that business for the term of the agreement.

Franchise your business

You can expand your own business too by franchising it. If you have a successful business, this is a good way to widen its reach. Make sure you have a franchise model that will work, and you can try it first to confirm that. While there is no specific registration or approval, creating a franchise is a legal process so you should use a professional.

Understand tax obligations

Both the franchisee and franchisor have different tax obligations under the law, and it is best to be familiar with those.
Useful links
Pages
Extra
Copyright © 2020 Handball west All right reserved.