Four Reasons You Should Choose a Franchise Lawyer Over a Business Lawyer

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BDC Law explains 4 reasons why you should use a franchise lawyer instead of a business lawyer

If you are considering becoming a franchisee and investing in a franchise business in Australia,
engaging the expertise of a franchise lawyer over a business lawyer is crucial to navigating the complexities of franchising law and safeguarding your interests.

Below are four reasons why franchisees should strongly consider engaging a franchise lawyer over a standard business lawyer.

Franchise Lawyers Have Experience and Knowledge

Franchising law in Australia is complex and despite regulations such as the Franchising Code of
Conduct
in place and other legislation applicable to franchising, franchisors usually have a balance
of power. A franchise lawyer possesses in-depth knowledge of these laws and regulations, ensuring
that you, as the franchisee, fully understand your rights and obligations under the franchise
agreement.

A franchise lawyer can review the franchise agreement and ancillary documentation
comprehensively yet very efficiently, in many cases costing you less than what a standard business
lawyer would charge, highlighting any clauses that may pose risks to your interests and negotiate on
your behalf to ensure more favourable terms. On the flip side of the coin, most business lawyers are
not very familiar with the franchising law which means you would be paying them to learn!

Review of Franchise Documentation

Franchise agreements and disclosure documents provided by franchisors contain critical information
about the franchise business, including fees, obligations and restrictions. However, navigating these
documents can be challenging without proper legal expertise. A franchise lawyer will know straight
away if something stands out as not quiet right, as they deal with these types of documents on daily
basis.

A franchise lawyer will also know when to negotiate with the franchisor and when the franchisor will
not engage in negotiations, in which case writing lengthy letters requesting amendments of the
franchise agreement would be a waste of franchisee’s money and advise them accordingly on how
to proceed.

Lastly a franchise lawyer, unlike a business lawyer, has reviewed and drafted many other franchise
agreements of other franchise systems and can provide valuable insight of what other systems have
in place.

Knowing Case Law

The Franchising Code of Conduct is the main regulation under the Competition and Consumer Act, which governs the franchising industry. Although a business lawyer can look at this regulation and advise
you accordingly, a franchise lawyer knows the Franchising Code of Conduct inside out and knows all
the recent case law applicable to it, which makes them much better equipped to provide you with
all-encompassing advice.

Generalist v Specialist

When you have a complex medical issue, your general practitioner will not start treating you for it
but will refer you to a specialist doctor. Choosing a lawyer is not dissimilar when there is a complex
specialist law, such as franchising law, and you should seek assistance from a specialist in this area.

BDC Law – Specialist Franchising Lawyers

Looking to purchase a new franchise? BDC Law’s franchise team has specialised expertise tailored for
navigating the complexities of franchising law in Australia. With our deep understanding of franchise
agreements and proactive negotiation skills, we will ensure you make an informed decision and will
protect your interests effectively. Contact us today for a chat to see how we can assist you.

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