Franchise Law



Meet the Co-chairs - TAGLAW


McKnew, Natalma (Tami)
Smith Moore Leatherwood LLP
tami.mcknew@smithmoorelaw.com


Franchise Law


Whilst franchisors can control how franchisees manage their business, they cannot control how their franchisees manage their finances.

And when a franchisee goes under, the first thing a franchisor will want to do is take control of the situation so as to protect the business and the brand.

But changes to Corporations Act 2010 referred to as the new ipso facto provisions, due in July, may leave franchisors sitting on the sidelines able to do very little or nothing.

Read more: Can a franchisor really terminate?


Contact: Tony Stumm, Partner 

The NSW Court of Appeal recently dismissed a claim by a franchisee who sued the franchisor for loss or damage because the franchisee was not able to prove that the loss or damage was attributable to the franchisor’s misconduct.

The case goes against the trend of many aggrieved franchisees successfully suing for damages based on allegations of the franchisor’s misconduct or misrepresentation.

To read the full article click here, or visit www.carternewell.com.


Contact: Ryan Hardy; Spencer Fane Britt & Browne LLP (Missouri, USA)

In the introduction to this column, we discussed in very broad terms how two people can form a contract for the sale of goods: one person offers to buy or sell, and the other accepts the offer. Simple!

Read more: Manufacturer's Corner: Forming the Contract


Contact: Ravi Sundara; Spencer Fane Britt & Browne LLP (Missouri, USA)

Effective January 1, 2014, the IRS now requires the use of a new form, Form 8822-B, for any entity that has a federal Employer Identification Number (FEIN) to report changes in the entity’s “responsible party.” The requirement to file Form 8822-B applies to all entities with an FEIN, including those which are tax-exempt. Although not required, Form 8822-B may also be used to report changes to an entity’s mailing and/or street address.

Read more: New Filing Requirement to Notify IRS of Changes in an Entity's “Responsible Party”


The majority of the Thresher franchisees are now negotiating with the administrators of First Quench Retail Ltd (FQR) to acquire the premises at which they run their stores so that they can become independent off-licences.

In late December the administrators, KPMG, concluded that they would be unable to find a third party purchaser for the franchised estate (88 stores) of FQR as the only bid received for the franchised business was made on behalf of over half the franchisees by their solicitors Blake Lapthorn. That bid was considered too low and rejected.

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Read more: New Year's Cheer for Thresher Franchisees