Articles


FRANCHISING CODE REVIEW

With great anticipation the franchise community has received a balanced and well informed review of the current franchise climate and regulations governing franchising in Australia following numerous petitions to State governments over the adequacy of regulations.

A report has been …

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LEGAL ISSUES IN FRANCHISING

Franchising has had its fair share of critics in the past. However, its franchising that provides opportunity and empowers small businesses by delivering the most viable model for competition with entrenched corporate groups. The appeal of franchising is well recognised. …

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INTELLECTUAL PROPERTY IN FRANCHISING- WHAT IS IT & WHY DOES IT MATTER?

At its core franchising is the most effective way of exploiting Intellectual Property (IP). It is a sophisticated form of licensing rights for the franchisee’s use of the IP in accordance with the franchisors’ methods, generally known as the ‘System’.…

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AUSTRALIAN WINNEBAGO REBRANDED

In 1978, the first Australian Winnebago Motorhome rolled off the production line. However, today the well known RV manufacturing company Winnebago Australia has changed its name to Avida Motorhomes, following a Federal Court ruling that Winnebago Australia ‘hijacked’ the ‘Winnebago’ …

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APPLE CAN’T ALWAYS HAVE THE CAKE AND EAT IT TOO…

According to reports, Brazilian copyright regulators will officially strip Apple of the ‘iPhone’ trademark on Wednesday, following a decision by the Brazilian Institute of Intellectual Property.

Why? IGB Electronica, a Brazilian consumer electronics company which manufactures its own iPhone, registered …

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DEALING WITH EMERGING FRANCHISE SYSTEMS

There is a view that sometimes new is better than old, but is that true when looking at emerging or mature franchise networks? The Griffith University’s Franchising Australia 2012 survey has shown that Australia is developing three new franchise systems …

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FRANCHISE SITES AND TERRITORIES

Location, location, location. It’s of course as important in relation to franchise outlets as it is in relation to real estate more generally. Not surprisingly the quality of the location of a franchise system’s outlets is a significant factor in …

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FRANCHISORS AND SUPPLIERS BEWARE: THE PERSONAL PROPERTY SECURITIES ACT IS A WOLF IN SHEEP’S CLOTHING!

Little comment in commercial circles has occurred in relation to the Personal Property Securities Act 2009.  Some companies know in a general sense that this Act is about to come into force, but few understand the practical implications of the …

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FITNESS GYM COPYRIGHT WIN

In late 2010 a dispute arose between the Phonographic Performance Company of Australia Ltd (PPCA) and the fitness industry (represented by Fitness Australia Ltd) over the price of playing music during exercise classes.

A large part of PPCA’s case was …

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SHAREHOLDERS AGREEMENT AND BUY/SELL AGREEMENT- WHAT ARE THEY?

Company start-ups are usually done in a spirit of optimism and entrepreneurs are often the sort of people who aim for the best rather than plan for the worst. But clear and concise documentation which manages business relationships is crucial …

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THE RETAIL LANDSCAPE

The success of any retail franchise is inextricably linked to the success of the lease negotiations. Rent constitutes the largest fixed cost of any retail business, generally ranging from 8% of sales up to 25% of sales in some cases. …

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MASTER FRANCHISE AGREEMENT v AREA DEVELOPMENT AGREEMENT

In recent times, the franchise sector has seen the appointment of Area Developers as opposed to Master Franchisees. Whilst there exist significant legal and commercial differences between a master franchisee and an area developer, there exists a tendency with the …

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COLOUR TRADE MARKS

The Trade Marks Act allows any ‘sign’, including a colour or colour scheme to be registered as a trade mark. There are currently 224 colour trade marks registered in Australia. Companies are rushing to secure their colour trade marks after …

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Agreement

WHAT IS A MASTER FRANCHISE?

It is through franchising that some of the world’s largest and best-known brands have achieved international expansion. Such expansion is generally attributed to master franchising.

If a franchise is expanding via master franchisees, it means they’ve contracted with a person …

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E-CONTRACTING

The internet is very much a business medium. E-commerce is a fast growing phenomenon that is valued at over $3.2 trillion dollars globally. Exactly how and when contracts are formed over the internet is an important,and often overlooked factor, better …

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BRAND AND GOODWILL PROTECTION: WHY IS IT IMPORTANT FOR FRANCHISING?

Intellectual Property (IP) rights are fundamental to a franchise. When IP rights are mentioned in a franchise agreement, those rights often relate to trade marks – which essentially represent the franchise ‘brand’.

Brand protection is very important for franchises, because …

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Trademark

COMMONLY ASKED INTERNATIONAL TRADE MARK QUESTIONS

Vitally important actions to be taken prior to filing a trade mark application.

Before filing, have you conducted a search of the Trade Marks Register internationally and of the marketplace?…A search of the Trade Marks Register and of the

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INTERNATIONAL EXPANSION AND THE LEGAL COMPLEXITIES

Often reported as the most successful method of product and service distribution developed during the Twentieth Century, franchising is seeing huge success on an international scale. Businesses today are encountering a business climate open to and accepting of new products …

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SPECIAL CONSIDERATIONS FOR BUYING A FOREIGH FRANCHISE

It is through franchising that some of the world’s largest and best-known brands have achieved international success. Such success is generally attributed to the export of franchise systems across the globe via a number of methods.

Often reported as the …

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DISCLOSURE DOCUMENTS MUST BE UPDATED BY 31 OCTOBER 2011

Reminders for 2011:…

A new development for 2011 is that “unilateral” changes made to the franchise agreement by the franchisor in the previous year need to be listed.  It is unclear what is included in the term “franchise agreement”, but

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SELLING A FRANCHISE BUSINESS

In most cases selling a franchise business can be cumbersome and stressful at the best of times. The secret to the smooth transfer of a franchise business is to ensure that the franchisee has within ample time met or have …

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THINGS TO LOOK OUT FOR IN A RETAIL LEASE

The Retail Leases Act (NSW) (the “Act”) and similar legislation in other states govern retail leases, granting valuable rights to you as a lessee and imposing various obligations on the lessor both before the lease is entered into and during …

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