Insights Whelan Lawyers – Melbourne Commercial, Franchising & Construction Lawyers

Introduction Most prospective franchisors are focused, reasonably enough, on the beginning; the first territory, the first franchisee, the first year of trading. The exit is, at best, a distant abstraction. But the decisions made at the outset of a franchise system shape the value of that system more than almost any other factor, and by the time a founder is actively preparing for sale, most of the choices that will determine the valuation have already been made. The exit is

Introduction Franchising in Australia operates under a well-developed legal regime. The Franchising Code of Conduct, which has the force of law under the Competition and Consumer Act 2010 (Cth), sets minimum standards for disclosure, franchise agreements, and the conduct of the franchise relationship. The prospective franchisor must determine the architecture of the system before the legal drafting can commence. Structure decisions, such as, how territories are defined, how r

Introduction Most prospective franchisors assume that if the business is profitable, it can be franchised. The profit-and-loss statement is healthy, the margins look sound, and the next step feels natural. What this overlooks is that franchising does not simply share the existing profit, it restructures it. The franchisor takes on new costs. The franchisee inherits a cost structure the founder never operated under. And the underlying business often needs to support returns fo

Introduction A profitable business is not the same as a franchisable one. This is the point at which many prospective franchisors stumble, they assume that because the model works in their hands, it will work in the hands of someone they have never met. The leap from one to the other is not small, and it is not bridged by enthusiasm or capital. It is bridged by evidence. That evidence takes specific forms: proven performance across multiple sites, time in the business across

Introduction For most successful business owners, franchising sounds like a natural next step. The business works, the brand has traction, and the margins look sound enough to share. What the growth plans rarely account for is that franchising is not simply an expansion strategy. It is a change in what you do for a living. The decision to franchise is often treated as a legal and financial question, and those dimensions matter considerably. But the transition that catches fou