1. Build a solid business model

Ideally, you should have an existing business that you want to expand into a franchise. It can be harder to sell a franchise model to potential franchisees if you cannot point to an existing business. It is easier to show that you have a proven formula when you already have a profitable business.

2. Do your research

Consider the industry your franchise will be operating in. You should think about:

• who your competitors are:
• whether there are similar franchises already; and
• which laws are likely to apply to your franchises.

A strong understanding of the market will allow you to pre-empt any potential issues and adapt your model accordingly. Additionally, speak with franchise lawyers and accounting and business experts for advice on what will work best for your franchise.

3. Prioritise recruitment

Take your time to develop a strategy for recruiting and assessing potential franchisees. First, consider what your ideal franchisee looks like, where you will find them and how you will attract them. Then, bring franchisees on board who are committed to your vision and high standards.

4. Implement training standards

Create training materials that give your franchisees the knowledge they need for success. For example, is there specialised equipment that your franchisees will be operating, or a particular recipe to be followed? Include these in your training materials.

5. Plan to succeed

Consider what you want your franchise system to look like. Then, reflect on what you can offer franchisees and what you expect of them in return. This will help you maintain high standards throughout your network and provide your customers the best possible product or service.

6. Decide on fees

You want your franchises to be profitable. This will encourage growth and draw other franchisees to your network. A crucial part of fostering this profitability is ensuring that the initial and ongoing fees you charge franchisees are reasonable.

7. Protect your Intellectual Property (IP)

Consider registering each type of IP relevant to your franchise. Register your logo as a trade mark and register your business name. Then, you can give franchisees a licence to use your IP for as long as they are franchisees.

8. Get your franchise documents drafted

You will need to prepare a franchise agreement and a disclosure document at a minimum. You can also require franchisees to sign other documents, including:

• property licences;
• confidentiality agreements;
• non-compete deeds; and
• personal guarantees.

You should also create an operations manual, a go-to guide that shows your franchisees exactly how to run their business.

Do not take shortcuts when it comes to your legal documents. Instead, you should take the time to consult with franchising lawyers. Franchising is a highly regulated area in Australia, with rules about what you can, and cannot, include in your franchise agreement.

Key takeaways

Franchisees buy into franchises to follow a proven system for running a profitable business. Therefore, before turning your business into a franchise, ensure you have everything in place to allow your franchisees to run a successful operation. Research and planning give your franchise the best chance of success.

If you have any questions about starting a franchise, LegalVision’s specialist franchise lawyers can assist. Become a member and you will have unlimited access to lawyers to answer your questions and draft all the necessary franchise documents to get your franchise off the ground. Call LegalVision today on 1300 544 755 or visit our membership page. You can also register for our free May webinar on how to set up a franchise network or download our free Franchisor Toolkit.

The post Eight steps to starting a franchise appeared first on Inside Small Business.

Registering a trade mark is an effective way to protect your growing brand. However, not every brand name, logo or slogan is ready to be registered. You may be thinking of applying for a trade mark but are not sure if it is the right thing for you. If so, this article sets out some key points to consider when deciding whether to register a trade mark.

Are you ready to register?

Registering a trade mark isn’t just a one-step process; it involves protecting the trade mark long term. If you’re interested in registering and using a business name but haven’t done the work required to protect your brand and aren’t prepared for setbacks, registering a trade mark might not be the right option for you.

You will need to have a clear vision of the direction of your business in mind. Once you have planned for the future and created a strong foundation for your business, your trade mark will be able to clearly distinguish your brand within the market. You will also need to be ready to apply the effort necessary to maintain your trade mark. This involves:

• paying for renewal;
• registering other marks that become associated with your brand; and
• legally pursuing potentially conflicting marks or brands.

If the process sounds too difficult, applying for a trade mark may not be the right option for you.

Are you going to use the mark?

You don’t have to be an established business to register a trade mark. You don’t even have to be selling your product yet. Many start-ups protect their business name from copycats before they launch to the market.

However, IP Australia does require that the owner of a trade mark is a company or individual who uses, or intends to use, the trade mark in a way that specifically relates to the products or services detailed in your application.

Is your mark distinctive?

Your trade mark will be used to distinguish your product from the competition. If it is too descriptive or too generic and doesn’t differentiate from other brands in the market, it won’t be accepted by IP Australia.

Creating a distinctive trade mark can be difficult, but there are strategies you can use to make your mark unique.

For example, an invented or foreign word can be useful because it is unlikely to have already been registered. Alternatively, memorable slogans that clearly communicate what your brand is about will help your business stand out from the crowd.

It is wise to avoid commonly used descriptive terms, or words and signs that might be confused with existing brands. Issues may arise when the trade mark:

• is too descriptive (e.g. ‘Sam’s Plumbing’);
• includes geographical locations (e.g. ‘Sydney Plumbing’);
• uses numbers; (e.g. Plumbing 123)
• is a short acronym; (e.g. Plumb) or
• is a common surname (e.g. Smith’s Plumbing).

Have you classified your mark?

Before you register your mark, you will need to identify the class of goods or services that your brand relates to. On the IP Australia register, trade marks are registered under one of 45 classes of goods and services.

For example, class 17 includes flexible pipes and tubes whilst class 37 includes building construction and installation services.

It’s possible that your business may supply a product that is covered by multiple classes. In that case, you can either register in the relevant classes or pick a limited number that you would prefer your brand to be associated with over others. If you are uncertain on the direction of your brand and therefore cannot decide on the classifications of your trade mark, then a trade mark might not be the right option for you.

Check the competition

Next, you will need to do some market research. Is anyone else using this trade mark? Is your trade mark distinctive enough to distinguish your product from others in the market? To check this, it’s a good idea to search the IP Australia Trade Mark Database and the Trade Mark Image Viewer in addition to your normal Google search.

You should look for marks that may be fairly similar to your brand, not just those that are completely identical. Begin your search with the businesses and brands that are within your industry and expand from there.

If your proposed idea is already in use, then you will need to rethink your name or logo. You could come up with a new trade mark that is distinctive based on what you know about the competition from your search. Or, you might decide at that point that registration is not the right option for you.

Key takeaways

Taking a bit of extra time to consider your brand name, logo or slogan before registration is a great way to figure out if registering a trade mark is right for your business.

If you have planned out your brand and developed a unique name and logo, then you have taken the first steps. Once you’ve scouted the competition and classified your mark, you are well placed to get started with your application. If you have any trade mark questions, contact LegalVisions’s trade mark lawyers on 1300 544 755 or visit legalvision.com.au.

The post What to know before applying for a trade mark appeared first on Inside Small Business.

Recent guidance from the Fair Work Ombudsman (FWO) and Safe Work Australia (SWA) suggests that most employees in Australia will not fall within this group. However, you will need to consider any such direction on a case-by-case basis, in line with the relevant circumstances of the business and the employee. This article explains when it may be reasonable for an employer to direct an employee to take the COVID-19 vaccine.

The COVID-19 vaccine

The COVID-19 pandemic has had an immeasurable effect on businesses, including straining the employer-employee relationship.

In a time that has already been trying for workplaces, including:

• JobKeeper payments and directions;
• the JobSeeker regime;
• snap lockdowns; and
• a myriad of work health and safety issues to navigate,

the next chapter is now upon Australian workplaces, with the COVID-19 vaccine rolling out across Australia.

Many Australians are likely to agree to take the COVID-19 vaccine, for their own safety and that of others. However, some individuals will not want to take the COVID-19 vaccine, possibly due to their:

• beliefs;
• medical conditions; or
• perceived safety concerns.

As an employer, you are responsible for the health and safety of all your employees, as well as your clients or customers visiting your premises. In the context of a rapidly spreading pandemic, it is desirable to have your employees vaccinated. Which begs the question – can an employer compel its employees to get the vaccine?

Can employers make employees take the vaccine?

The answer to this question is not definitive. However, recent guidance from the FWO and SWA has, at a high level, indicated that:

• employers cannot assume that they can direct employees to take the vaccine;
• employers who do direct employees to take the vaccine will need to demonstrate that it is a lawful and reasonable direction, which will be determined on a case-by-case basis; and
• vaccinated employees will probably not be able to refuse to come to work if other employees are not vaccinated (subject to any relevant health directions).

When is a direction to take the vaccine lawful and reasonable?

You need to consider this in line with the individual circumstances of your business and employees. Some relevant factors include whether:

• the nature of the work carried out by the employee and the business is relevant. For example, does the employer’s business involve circumstances which give rise to risks relating to COVID-19 transmission?
• the vaccine is required in order for the employer to meet their legal work health and safety obligations;
• the vaccination is an inherent requirement of the employee’s role;
• it is discriminatory to require certain employees to receive the vaccine (for example, due to religious beliefs); and
• what alternative arrangements can be put in place to reasonably manage the risk relating to employees who do not have the vaccine (for example, working from home)?

In some circumstances it may be obvious when it is a lawful and reasonable direction in relation to the vaccine. For example, where employees have close contact with vulnerable classes of people, such as in direct care roles. However, for the vast majority of Australian businesses, the determination will not be this clear, and care will need to be taken.

The landscape in relation to the vaccine could change rapidly. It is vital for employers to continue to be vigilant in monitoring updates and guidance from relevant government bodies (like the guidance already provided by the Fair Work Ombudsman and Safe Work Australia), as well as any changing law in this area.

Is there an alternative to providing a direction to employees?

Employers may also wish to consider alternatives to directing employees to taking the vaccine. This could include::

• incentivising employees to take the vaccine willingly, for example providing paid time off for the employee to take the vaccine, or allowing it to be administered during working hours;
• considering alternative working arrangements for employees who do not wish to take the vaccine, and for who it would be unlikely that a direction would be lawful and reasonable; and / or
• increasing other COVID-19 safety measures to account for employees who may choose to not take the vaccine.

Key takeaways

Regardless of the business you operate, whether or not you can lawfully and reasonably require an employee to take the COVID-19 vaccine is a delicate and sensitive issue. It is also not a simple matter, with the regulatory environment likely to change rapidly, and repeatedly.

If you are uncertain as to whether or not you can require your employees to take the vaccine, then it is crucial that you seek legal advice. LegalVision’s experienced employment lawyers can assist. LegalVision is also hosting a free webinar on 22 April 2021 to answer your questions.

LegalVision is a market disruptor in the commercial legal services industry. Their innovative business model and custom-built technology allow their lawyers to provide a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services and has assisted more than 150,000 businesses. The firm was recently named the fastest growing law firm in the Asia-Pacific by the Financial Times.

The post What employers need to know about the COVID-19 vaccine appeared first on Inside Small Business.