Franchise & Retail Clients:

Retail law embodies the complexities of the legislation, regulations and codes that govern retail transactions involving retailers and individuals or corporations. It may also include legislation that governs the sale of goods, consumer protection and compliance with statutory bodies.  It is essential to be aware of the intricacies of retail law, so as to avoid contravening any civil and criminal liabilities and in doing so hopefully protecting any damage to your retail business.  In unfavourable circumstances, damages might arise from matters that might include a breach of Australian consumer law or damage to your business’ goodwill or reputation. Obtaining sound legal advice from a Franchise & Retail Solicitor may assist you in entering the retail industry, engage in business practices in a manner that are efficient and compliant and minimise the risk of liability. 

If you are a retailer it is important to be mindful of your obligations derived from law, codes of practice and statutory bodies such as the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC).  It may be significant to ensure that your business practices and employee policies are compliant with Australian consumer law. It may be advisable to source proper legal advice before entering into any retail lease agreement and to receive ongoing legal support to protect your rights against any landlord, particularly to avoid and minimise any conflicts or disputes. In addition, you may need legal advice in corresponding with suppliers, consumers, wholesalers and other third parties.  A skilled Franchise & Retail Lawyer may be able to assist you in all your legal issues and inquiries in this regard.

Furthermore, there are taxation and reporting obligations that will need to be fulfilled. You may need legal advice in complying with various taxation compliance requirements such as Business and Activity Statements (BAS), Capital Gains Tax (CGT), Goods and Services Tax (GST), Superannuation, income statements and other financial documents to be prepared for management, as well as other disclosure obligations.  Our team of highly experienced private client lawyers, accountants and financial advisers may be able to provide you assistance in this regard.

Franchise law is a subset of retail law in which involves the practice of using another firm’s business model.  This often means that there will be standardised product/s, management and marketing procedures. Buying a franchise is frequently seen as the fastest and easiest way to get into business, especially for the novice. The reasons include the fact that the product is usually well known, the market has been established, management training and advice is available from the franchisor; the franchisor’s advertising and promotion achieves much greater market coverage and product recognition than any small independent could; the work of finding a suitable location is also frequently done by the franchisor; banks usually will treat a franchise of an established company as a much lesser credit risk.

Whilst there may in some cases potentially be some benefits in proceeding with a franchise acquisition, prospective and current franchisees should be mindful of the risks involved.  Entering into a franchise is expensive and the return on investment may not be as high as anticipated.  There may also very high costs involved in royalties, supply agreements and the risk that equipment and materials are provided at relatively high market costs.  There might also be limited control over management and procedure, which may mean that your day to day operation of the franchise may be quite restrictive.  Consultation with a Franchise and Retail Lawyer to obtain proper legal advice could assist you in becoming aware of your rights, obligations and the risks involved in any franchise contract. You should consult a Private Client Lawyer immediately and preferably prior to entry into any Franchise Agreement.  Some of the risks that a Private Client Lawyer might make you aware of may include discovering what is owed to the franchise company, what recourse is available to the franchisee for actions on the part of the franchisor that threaten the profitability, as well as actual redress if you believe the franchisor is not acting in good faith or has breached their obligations.

Franchise agreements may be prejudicial and in fact very often do tip the balance of power towards the franchisor.  Review and consideration of such agreements by a specialist Franchise & Retail solicitor may be beneficial to ascertain any issues and potential risks to enable you to make fully informed decisions, aware of your rights and options available.

If you need further legal advice on your matter, you may book an appointment with us by calling 02 9233 4048 or by sending an email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Tax or Accounting Advice. It does not take into account your objectives, financial situation or needs or your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.