The franchise agreement is a legally binding document explaining the rights and obligations of the franchisor and the franchisee. For example, if they have given you some training on the deductible, the franchisor may be able to keep all or part of your money to pay for it. Note: If a franchisor intends to renew the franchise agreement, they must inform you (at the same time) that you are entitled to an up-to-date disclosure document (if you have not yet requested one in the last 12 months). If your franchise agreement is a standard agreement, you should also check whether unfair contractual clauses apply. A standard form contract is a contract that has been prepared by the other party, and you have few opportunities to negotiate the terms. The ACCC website contains more information on abusive contractual terms and the purchase of a franchise. 7.2 Is the concept of a conditional option/rental through the lease agreement (under which a franchisor has the right to enter the franchisee`s shoe under the lease agreement or directly that a third party (often a replacement franchisee) can do so in the event of non-compliance with the original tenant or termination of the franchise agreement understood and applicable? If you are in dispute about a proposed termination of a franchise agreement, you can use the Code`s dispute resolution procedure. When choosing a franchise agreement from an online retailer, we advise you to review the models of different suppliers to assess what is most comprehensive and convenient for you. The models are cheap compared to the cost of a lawyer`s time, and the benefits for your business, so getting your franchise contract properly is huge. Keep in mind that a brief agreement, regardless of where it is purchased, will not adequately protect your business, not because the franchising law is overwhelming, but because practical considerations about how the franchise will work will require more than a few pages to register it.
Sometimes, after making a big decision to buy a franchise, you can change your mind. You can do this within seven days of signing or paying the money as part of the agreement (depending on what comes first). This is often referred to as your right to “cooling.” If you buy a franchise, but change your mind a year later, it could cost you a lot of money to terminate the franchise agreement prematurely. Since 2015, the code has contained an obligation for both parties to the franchise agreement to act in good faith.