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Contract Conflict Causes Commotion

Not Happy JanNew Zealand franchise lawyers are grinding their teeth over a Law Society’s pending publication of a standard form franchise contract saying it goes way too far.  Panic could actually hit the fan. 

[ADLS] feels that the development of an industry standard form with the backing of the widely respected [ADLS] brand will increase commercial confidence in the reliability and the financial feasibility of the franchise system, expanding the market as a result.

[ADLS] is also confident that the development of this form will increase the demand for legal services connected with the franchise industry and help to move this form of business structure towards the forefront of commercial legal practice. NZLawyerOnline

The art form of fining tuning franchise contracts to suit individual franchisor needs has been on display often enough. Can franchisors protect their rights and those of franchisees within a standard form template contract?  Or is contract fine tuning usually about enforcing and protecting franchisee revenue squeeze rather than contractual protection of investments and an allusion of evolving needs to contain wayward and presumably, more sophisticated franchisees?

Relevance please;

ADLS has been producing forms and precedents for use by practitioners and its Agreement for Sale and Purchase of Real Estate is well-known and used by lawyers and real estate agents.

After all Real Estate is now a heavily regulated sector following the heyday of sc*ams in times past.

And besides; readers, like myself, might have serious concerns as to whether a best practice template franchise contract is really worth the fuss when balanced against the pain of possible lost revenue influences that might be experienced by whining lawyers.  

No votes yet

About Ray Borradale

Ray Borradale's picture

Public Profile

Over forty years experience in Small Business and more than twenty-five years in franchising operations as a franchisee and employed by three franchisors, mostly in operations.

I have dedicated more than ten years and over 15,000 hours in the pursuit of quality franchising and exposing franchisor abuse of franchisees while advocating for the introduction of franchise relationship Law and the levelling of the dispute processes between bigger business and small business.


Area of Interest
Franchise Operations