In recent times, franchises have become a popular business practice in Australia. Franchising provides business people with opportunities to market and exploit their products. For example, if you have developed a particular product which is increasing in popularity and emerging into a brand name, you may like to exploit your brand name by selling it another person/business operator as a franchise. Some of Australia’s successful businesses have been developed and marketed as franchises. For example, Jim’s Mowing started his business as a modest sole trader in the outer suburbs of Melbourne, built the reputation of his business over the years, marketed and developed his brand name and now franchising his brand name to business operators all over Victoria.

Franchises are governed by a franchise agreement between the franchisor (the party delivering the franchise) and franchisee (the party buying the franchise) where the franchisor sells its brand name, product, skill and expertise to a franchisee who agrees to abide by the terms of the franchise agreement. Though generally franchise agreements are in writing, law also recognizes verbal or implied agreements.