Home topics small-business-resources franchising Editor's Choice Franchising Legal Editor's Choice The 5 legal issues to watch out for when investing in a franchise Guest Author February 9, 2015 Currently, there are over 73,000 franchise businesses is Australia that employ over 400,000 people. Owning a franchise can be an attractive opportunity for many passionate entrepreneurs and it can be a desirable option for those who want to own a small business without the usual business risks involved. Choosing a franchise over owning an independent business should provide you with constant back up and support. However, this doesn’t mean that you need to wash your hands of the legal and financial implications. Whether you decide to buy into a franchise, or you’re the franchiser, there are key legal issues that you need to pay close attention to. These include: 1. The Disclosure Document By law, all Australian franchise networks are required to provide a Franchise Disclosure Document. This is one of the most important sources of information you’ll have regarding a franchise – it will explain issues including the company’s records, business experience, rights, costs and various other legal and financial aspects of buying into the franchise. Make sure you pay sufficient attention to all the details laid out in this document. 2. The Code of Conduct The franchising Code Of Conduct is a legally binding document that describes how business between franchisor and franchisee should be conducted. Basically, this document sets the legal scene for the business relationship and identifies procedures