Document background
The Franchise Purchase Agreement is a crucial document used when an existing franchisee wishes to sell their franchise business to a new operator in Australia. This agreement must comply with the mandatory Franchising Code of Conduct and various Australian federal and state laws. It covers the complete transaction process, from initial conditions and due diligence requirements through to completion and post-sale obligations. The document typically includes detailed provisions about the transfer of assets, assignment of leases, employee matters, and ongoing franchise obligations. It requires careful consideration of both the existing franchise agreement terms and the franchisor's transfer requirements, while protecting the interests of all parties involved. The agreement must include specific provisions required by Australian franchise law, including cooling-off periods and dispute resolution processes.
