This is a document transfer of franchise agreement for use by a franchisee during a franchising transaction.
A franchise agreement is a contract between the franchisor and the franchisee. Under that contract, the parties are bound for a specified term. If the franchisee wants to sell their franchise to another person, a transfer of franchise agreement is required.
This transfer of franchise agreement assigns an existing franchise agreement from the current franchisee to a buyer of their franchised business. This agreement is designed to be used by the existing franchisee.
If the franchise agreement is transferred to the purchaser of the franchise business, the Franchising Code of Conduct cooling off provisions do not apply. If you are acting for the purchaser of the franchise business, you should request a new franchise agreement so that your client benefits from those provisions.
When the franchise agreement is transferred, the purchaser must be provided with:
- an updated franchisor disclosure document;
- a copy of the Franchising Code of Conduct; and
- an information statement.
The purchaser must provide the franchisor with a written statement that they have received, read and had a reasonable opportunity to understand the transfer of the franchise agreement document which incorporates the original franchise agreement as well as disclosure documentation listed above.
This document has been authored for AusDocsOnline.com by Stephen Giles, Norton Rose Fulbright Australia with introductory notes by Jane Garber-Rosenzweig, Gable Lawyers.
This document is prepared with the assistance of Specialist Editor Stephen Newman, Executive Counsel, Ponte Earle.