Some franchisees in Australia speak languages other than English. We have translated a number of resources into Hindi, simplified Chinese and traditional Chinese. Before you sign a franchise agreement, you will receive as much information as possible about the deductible and make sure you understand the risks. Note: Since the introduction on June 1, 2020, of changes to the New Vehicle Trade Agreements Code, new car dealership contracts are subject to different end-of-contract requirements. You can find the amendments here. The Code requires you to follow certain processes when proposing to terminate a franchise agreement. It is very important to check for yourself whether the deductible is a good deal or not. It is against the law for a franchisor to give you false or misleading information. However, there is no legal protection for anyone who does not do independent audit and research and is part of a bad agreement.
Franchising is very different from other forms of activity. It can, for example, be extremely restrictive. You don`t have the same control over a company you run independently. Franchisors can generally control the products or services sold by your franchise and where they must come from. The code requires you to manage a disclosure document. They are required to make a disclosure document available to a person who proposes to enter into, renew or renew a franchise agreement. Under these conditions, you must inform the franchisee in writing of the proposed termination and the reasons for the termination. The code requires franchisors to indicate in their disclosure document what the rights of potential franchisees will be at the end of their agreement.
In addition, a franchisor must notify you at least six months before the end of your term if it intends to renew your contract or grant another franchise agreement. If the duration is less than six months, the franchisor must notify you one month before the expiry of the period. If you buy a franchise and it goes wrong, you could lose all your money and all the assets, like your home, against which you borrowed. The franchise agreement you submit during the pre-registration period must be presented in the form in which it is to be executed. This means that you cannot simply make a draft agreement. Franchise agreements are generally in place for a specified period of time. However, a franchise agreement may end prematurely for a number of reasons.