If you are thinking about starting a franchise in Australia, it is imperative that you understand all the fine points that come into play when you are considering what type of business is right for you.
Pay Attention to Applicable Regulations
It is never a great idea to jump into something head first without knowing the legal framework that is involved. In case you did not already know, Australia regulates franchise business heavily. We are not talking about a minimal amount of regulations. Some people go so far as to think that Australia is one of the toughest regulatory countries in the world. Unlike states in the USA that are allowed to make their own regulations on franchising, Australia is regulated nationally.
Operate Within the Letters of the Law
As you can imagine, smart entrepreneurs and business owners need to know whether their business ideas are acceptable under the Trade Practices Act that covers the Franchise Code of Conduct. To assure that your business idea is feasible and acceptable in Australia, it is always a smart idea to seek the professional advice of a franchise lawyer to review your business plan. He or she will be able to check your plans against the rules and regulations and verify that your business idea is within the federal guidelines set forth by the Australian Government.
Get Your Legal Paperwork Completed and Filed
If your lawyer advises you that your business idea is valid, the next step you will need to take is having your legal paperwork completed and filed with all the correct agencies. The first document that will need to be drawn up is a disclosure document. This important document is drawn up to provide detailed information to any prospective franchisee, or a franchisee faced with the decision to renew or extend their franchise agreement.
This disclosure agreement has to give people who are considering the franchising opportunity enough truthful information for them to make an informed decision about the franchise. The disclosure agreement must have current information and not outdated material. Further, prospective franchisees must get this information at least 14 days before signing up to buy the franchise or at least 14 days before the renewal or extension of the franchise agreement. This gives the franchisee enough to time to consider whether they wish to continue with the franchising scheme or not. It gives them time to take their time to decide on the future of their business venture and prevent the franchiser from taking the initiative to auto-renew the agreement and force them into staying with the company, even if they do not want to. This levels the playing field for both franchisers and franchisees.
When you need to make an informed decision about whether a franchise opportunity is for you, be sure to take the extra time to check all the information and prospects that are available to you. There is no rush to jump into a business opportunity without analysing it first.