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You cannot set the sale price

Posted by Elizabeth Gore-Jones on 14 June 2019
Did you know you can't set the retail price or a minimum price that a franchisee, distributor or a retailer must charge? Many people are surprised about this. Australia's competition laws want competition in the market place.  If a fanchisor, manufacturer, wholesaler etc sets a retail price or says you can't charge below a minimum price then that will not encourage competition. You can set a maximum price because that will encourage competition and get a better...
Posted in: Business Franchisee Franchisor  

Do you know what a cascading clause is?

Posted by Elizabeth Gore-Jones on 10 June 2019
Many people are confused about how cascading clauses work. A cascading clause is often used for restraints of trade.  They look something like this: Restraint period: (a) 3 years (b) 2 years (c) 12 months And, Restraint area: (1) Australia (2) Queensland (3) Brisbane. They work like this: many courts do not have the power to rewrite clauses but they do have the power to strike clauses out courts will only enforce a restraint of tra...
Posted in: Leases Business Franchisee Franchisor  

Franchisor Experience

Posted by Elizabeth Gore-Jones on 7 June 2019
I have just reviewed a franchise agreement where the franchisor has only had 2 years of experience in the franchised business. When acting for franchisors I advise them that they need to have had enough experience in the business to give their franchisees real value for their investment. Franchisors should have created systems to make running the business as bombproof and streamlined as possible. I usually tell franchisors they need to have made "all of the mistakes" ...
Posted in: Business Franchisee Franchisor  

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Bob Jane Corp Failure to Comply with Code

May 01 2020
The Franchising Code of Conduct requires that a franchisor advise a franchisee in writing at least 6 months before the end of the franchise term whether or not the franchisor intends to renew or extend the franchise agreement. A failure to com...

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