One of the BEST and easiest tips I’ve heard to help ensure you properly understand the Franchise Agreement comes from Victorian Small Business Commissioner Judy O’Connell.
During a panel discussion at the Australian Franchise Expo Online, Judy shared the following tip:
When reading through the Franchise Agreement prior to signing:
- highlight everything you need to do in green,
- highlight everything the franchisor needs to do in blue, and
- highlight anything you don’t understand in pink and then seek professional advice so you do understand.
Judy says one of the most common causes of franchise conflict, and in turn mediation, is from franchisees signing the Franchise Agreement without fully understanding what’s in it.
She went on to stress the importance of seeking professional advice.
“Get professional advice and really do your homework,” Judy says.
“Look up the ACCC. They have a lot of information about the Disclosure Document, check the franchisor’s background on ASIC website, and get professional advice from a lawyer and accountant. It can cost money but it will save you a lot of money in the long term.”
When investing in professional advice it’s wise to seek advice from lawyers and accountants with specific experience in franchising, who clearly understand the business model.
The above is only one of several tips and pieces of advice offered by our content experts during their session at the Australian Franchise Expo Online in September 2020. We are excited to announce that a brand new bigger and better expo is coming soon!