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Business & Commercial

Franchisor or franchisee?

Different sides, different needs. But both require legal foundations built for the long term.

The Reality

Same relationship. Opposite perspectives.

Franchising offers proven pathways to business success. For franchisors, it means expansion with motivated operators. For franchisees, it means established systems that reduce startup risk.

"These are long-term commitments with significant financial stakes on both sides. Getting the legal foundations right matters enormously."

Erick Smith, Consultant at Carlile Dowling
Erick Smith, Consultant
Build
Systems

For Franchisors

You have built something that works. Now you want to replicate it through motivated operators who invest their own capital. But your franchise system needs legal infrastructure that protects your brand while attracting quality franchisees.

  • Disclosure documents
  • Franchise agreements
  • System development
Buy
Into

For Franchisees

You are considering a significant investment in someone else's system. The franchisor's documents are prepared to protect the franchisor. Having your own lawyer review the opportunity informs and protects you of the upsides and downsides of the deal.

  • Disclosure review
  • Agreement analysis
  • Due diligence support
For Franchisors

Building systems that attract quality operators.

Discuss your franchise system

Disclosure Document

Fair Trading Act Compliance

We prepare comprehensive disclosure documents covering business history, financial information, franchisee details, and material facts that must be disclosed.

Franchise Agreement

The Core Relationship

We draft agreements covering grant of rights, term and renewal, fee structures, operational requirements, IP protection, territory allocation, and termination provisions.

System Development

Beyond Documents

We advise on operations manuals, training requirements, quality standards, marketing fund structures, and territory mapping. Getting foundations right before launch reduces problems later.

For Franchisees

Disclosure Review

Independent Analysis

We review the disclosure document to assess completeness and identify concerns. This includes examining the franchisor's history, financial position, and existing franchisee information.

Agreement Review

Clause by Clause

What rights do you actually get? What are the true costs over the term? How much control does the franchisor have? What happens at renewal or if you want to exit? We explain the risks in plain language.

Due Diligence Support

Beyond Legal

We advise on financial modelling considerations, questions to ask existing franchisees, market factors, training evaluation, and premises requirements. Proper due diligence protects your investment.

Independent advice matters

The franchisor's documents are prepared to protect the franchisor. This is a significant investment decision - independent legal advice is essential, not optional.

Read: 5 Things to Consider Before Buying a Franchise

Critical areas that require careful attention.

Whether you are building or buying into a franchise, these issues demand thorough analysis.

Territory Protection

What exclusivity do you actually have? Can the franchisor open nearby? What about online sales? Territory clauses need careful analysis.

Exclusivity Rights

Marketing Funds

Where do marketing levies go? Who controls spending? What accountability exists? Marketing funds can be contentious if not clearly structured.

Fund Governance

Fee Structures

Initial fees, ongoing royalties, marketing contributions, technology fees, training fees. Understanding the true cost of the franchise over its term.

Total Cost Analysis

Operations Control

How much freedom do you have to run your business? Pricing, suppliers, hours, staffing - the franchise agreement determines your autonomy.

Business Autonomy

Termination Consequences

What happens if the franchise ends? Restraints of trade, equipment ownership, customer relationships - termination provisions have lasting effects.

Exit Planning

Franchisor Position

What is the franchisor's financial health? Their track record? Litigation history? Understanding who you are partnering with matters.

Partner Assessment
Ongoing Support

Throughout the franchise relationship.

We support both sides through renewals, disputes, transfers, and system changes.

Franchisors

System Management

  • - Compliance monitoring
  • - Disclosure updates
  • - Franchise renewals
  • - Standard enforcement
  • - Transfer approvals
  • - Dispute resolution
Franchisees

Relationship Support

  • - Performance issues
  • - Renewal negotiations
  • - Transfer and exit
  • - Franchisor disputes
  • - Breach claims
  • - Rights advice
Local Experience

Hawke's Bay Focus

We have advised on franchise matters throughout Hawke's Bay - from local franchisees of national systems to regional businesses exploring franchising as a growth strategy.

Get Started

Discuss your franchise situation.

Contact Us
Client Observations

What Our Clients Say

"Prompt, friendly & efficient service"

Client

"I have always received excellent service from Carlile Dowling."

Repeat client

"A pleasure to work with."

Client

To ensure candour, all feedback was collected anonymously.

Your Team

Your Franchising
Team

Commercial experience for both sides of the franchise relationship.

View all team members

Common Questions

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Ready to get started?

We're here to help. Get in touch for clear, practical advice.

Let's talk about your situation

Every situation is unique. Get in touch to discuss how we can help.

Have questions?

Our team is here to help. Get in touch for clear, practical advice.

Take the next step

150+ years of Hawke's Bay expertise. Get in touch to discuss your situation.

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