Franchising - common pitfalls and disputes 2017 - Online CPD

Package includes:

Online CPD Module  l  Booklet  l  PowerPoint Presentation

Package Fee (incl GST)

• $149 - NZLS members and Associate members
• $179 - Non-members

Note: Access to the online files is via your "My CPD" page. If you would like to purchase multiple packages, please contact us here.

Online CPD Module

Presentation time: 90 minutes

Franchising is a growth industry and New Zealand does not have any franchise specific legislation to protect franchisees through due diligence, against unfair franchisor actions or when it comes to dealing with problems. It is increasingly important that practitioners providing advice in this area understand the due diligence that needs to be undertaken and
what the options are for both sides when things go wrong.

Topics covered will include:

• The implications to clients of entering into a franchise arrangement
• Practical tips for conducting due diligence when acting for a buyer
• Examining what kind of disputes typically arise (for eg breach and termination notices, performance issues, lack of good faith and restraints of trade) and how to solve them
• Negotiations and optimising the ongoing franchising relationship.

Learning objectives

After completing this module you will be able to:

• Confidently advise prospective franchisees.
• Examine, draft and review documentation to optimise their clients’ position.

Please contact us if you use a dial up internet connection.

Booklet

Authors: Sarah Pilcher, Deirdre Watson
Published: 16 May 2017
Pages: 43

Introduction

This part of the paper looks into some of the less attractive features of franchising. It covers what the lawyer needs to look out for when advising a prospective franchisee for a due diligence review of a Franchise Agreement. The focus is on advising franchisees although much of the paper will be of interest and relevant to lawyers advising franchisor clients.

The writer’s approach to advising potential franchisees has evolved over many years of seeing what can happen when franchising goes wrong or when franchisees get surprises about what they signed up for, or what the franchisor can do.

Assume nothing about what a client understands regardless of their past business experience or the level of investment in the franchise business. The size, solid appearance and general reputation of a franchise chain can bear little resemblance to the experience of being a franchisee in that system.

When an unhappy franchisee seeks advice for a problem, the questions they ask and the complaints they have often confirm that they had very little appreciation of what they agreed to when they signed their franchise agreement.

PowerPoint Presentation

These are the slides included in the presentation.