Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
Refine your search by selecting a city.
Franchising is a popular business model in New Zealand, where one party (the franchisor) grants another party (the franchisee) the right to use their business model, brand, and intellectual property in exchange for ongoing fees. Franchising is regulated by the Franchising Code of Conduct and the Fair Trading Act to ensure transparency and fairness in business dealings.
There are several situations where you may need legal assistance in franchising, such as drafting or reviewing franchise agreements, resolving disputes between franchisors and franchisees, understanding your rights and obligations under the Franchising Code of Conduct, or navigating complex legal issues related to intellectual property or competition law.
Key aspects of local laws relevant to franchising in New Zealand include the Franchising Code of Conduct, which sets out minimum standards for franchising agreements, disclosure requirements, termination rights, and dispute resolution processes. The Fair Trading Act also prohibits unfair trading practices, false advertising, and misleading or deceptive conduct in franchising relationships.
A: The Franchising Code of Conduct is a mandatory industry code that regulates the behavior of franchisors and franchisees in New Zealand. It sets out minimum standards for franchising agreements, disclosure requirements, termination rights, and dispute resolution processes.
A: As a franchisee, you have rights to receive accurate and timely information from the franchisor, to operate your franchise without unfair interference, and to terminate the agreement if the franchisor breaches the terms of the contract or the Franchising Code of Conduct.
A: A franchisor can terminate a franchise agreement in certain circumstances, such as if the franchisee breaches the terms of the agreement, fails to pay fees, or engages in conduct that damages the reputation of the brand. However, the franchisor must follow the termination procedures outlined in the agreement and the Franchising Code of Conduct.
A: A lawyer can help you draft or review franchise agreements, negotiate terms with the franchisor, resolve disputes through mediation or arbitration, advise you on your rights and obligations under the law, and represent you in court if necessary.
A: When reviewing a franchise agreement, pay attention to the terms related to fees, territory, training and support, marketing requirements, renewal and termination rights, dispute resolution processes, intellectual property rights, and any restrictions on your ability to operate the business.
A: Some risks of franchising include limited control over your business operations, dependency on the franchisor for support and supplies, potential disputes with the franchisor or other franchisees, fluctuations in market conditions, and the possibility of the franchisor going out of business.
A: Disputes with your franchisor can be resolved through negotiation, mediation, or arbitration, as outlined in the franchise agreement or the Franchising Code of Conduct. If informal methods fail, you can seek legal advice to enforce your rights through the courts or other legal channels.
A: As a franchisee, you are obligated to comply with the terms of the franchise agreement, pay fees and royalties on time, operate the business according to the franchisor's standards, maintain the brand's reputation, participate in marketing efforts, and report financial information to the franchisor.
A: Yes, you can sell your franchise to a third party, but you will need the approval of the franchisor and may be subject to restrictions or conditions outlined in the franchise agreement. It is important to seek legal advice before entering into a sale agreement to protect your interests.
A: To protect your intellectual property in franchising, ensure that the franchise agreement clearly defines ownership rights, use restrictions, licensing terms, and confidentiality obligations related to trademarks, copyrights, patents, trade secrets, and other proprietary information. Consult with a lawyer to draft intellectual property clauses that safeguard your rights.
If you need legal advice or assistance in franchising, you can contact the Franchise Association of New Zealand (FANZ), the Commerce Commission, the Ministry of Business, Innovation and Employment (MBIE), or seek out a qualified franchise lawyer in your area for guidance and support.
If you require legal assistance in franchising, schedule a consultation with a qualified lawyer who specializes in franchise law to discuss your specific needs, review your franchise agreement, assess your legal options, and find solutions to protect your rights and interests in the franchise relationship. A lawyer can provide personalized advice and representation to help you navigate the complexities of franchising law in New Zealand.
