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Once you establish a successful business, you could consider expanding your operations by franchising. Franchising is a way of selling the right to run a style of business and sell a product or service for a period of time.
Before you decide to franchise your business, you should ensure you have a successful and proven franchise model. Operating your own franchise model prior to selling a franchise can help prove your concept, establish demand and create sound processes and systems that can be repeated in each new franchise.
There is no specific franchise registration or approval process, but setting up is a legal process and can take some time. It is important that you plan thoroughly and seek professional advice from an accountant, solicitor or franchise consultant.
- Complying with the Franchising Code of Conduct
As a franchisor, you are required by law to comply with the Franchising Code of Conduct.
- Preparing your franchise agreement & manual
A franchise agreement is a legal contract that outlines the rights and obligations of both the franchisor and the franchisee and the relationship between them.
- Understanding your tax obligations
As a franchisor, you need to understand your tax obligations and how franchising fees are treated for tax purposes.
- Resolving franchising disputes
If a dispute occurs and it cannot be resolved between you (the franchisor) and a franchisee, the Office of the Mediation Adviser (OMA) can help you resolve it without going to court.
- Expanding your franchise overseas
Franchising overseas will involve extensive research of your preferred country, especially details on their registration and legislative requirements for setting up a franchise.