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A franchise agreement is a legal contract that outlines the rights and obligations of both the franchisor and the franchisee. Franchise agreements should be reviewed by a solicitor experienced in franchise issues. You should also create an operations manual that sets out in detail how the franchise is to be run. Getting your agreement and manual done right can help ensure a successful franchise.

Protecting your Intellectual Property (IP)

Your trade mark, business method or unique business idea can be the basis of a successful franchise business. As a franchisor, you need to ensure you protect your IP and develop clear guidelines for its terms of use in your franchise agreement and manual.

Complying with Occupational health and safety obligations

As a franchisor, you also have additional Occupational Health and Safety (OH&S) obligations to your franchises. You need to ensure that your franchise agreement and manual, particularly references that have OH&S implications, comply with all OH&S laws and ensure the safety of all people involved in the franchise.

What to do…

  • Consult a business adviser, accountant, solicitor or franchise consultant for advice on setting up your franchise agreement.
  • Read about Franchising your business on the Business Victoria website.
  • Visit the Franchising & IP page on the IP Australia website.
  • Find out your OH&S obligations from Australian Safety and Compensation Council (ASCC) website.
  • View the Franchise business guide to OH&S responsibilities for specific information for franchisors in each state or territory.
  • See our Occupational health & safety topic for more general OH&S information.


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