Franchising and More Around the Gap

Are franchise deals really “take it or leave it” deals?

If you have come across a franchise deal that looks too attractive to resist and you are told to rush in before it’s too late, we plead with you to hold your horses.  Don’t sign anything before we review your franchise documentation and advise you on any pitfalls.   If you wish, there is always scope to negotiate changes to your franchise agreement that will clarify your new business and deliver you from future disappointment and frustration.

We have advised clients on a range of franchising models.  Our franchise lawyers at Samford and The Gap are happy to assist you and to partner with you in growing your business.

Absentee Land Tax and additional Duty for Foreign Acquirers


The rates for Stamp Duty and Land Tax in Queensland have recently been amended to provide additional charges for foreign and absentee land owners – do they apply to you?


Duty

An additional charge for Duty now applies at the rate of 3% of the GST inclusive transfer value where the acquirer is:

  1. A foreign individual,
  2. A foreign corporation, or
  3. A Trustee of a foreign Trust.

The definitions in the Act treat as foreign anyone who is not either an Australian citizen or a permanent resident of Australia.  Importantly, a Trust is deemed to be a foreign Trust (Section 237 of the Duties Act) if at least 50% of the primary (often called residuary) beneficiaries in the Trust are foreign citizens / corporations.

Please note that the legislation allows a reviewing of this situation should it change at any time within 3 years of the date of acquisition (see Section 246A). [Read more…]

Just a “standard” Lease?

Your dream of owning or relocating your business is almost true!  You have found the ideal premises at the perfect location and the Landlord requires you to sign the Lease or the “Agreement to Lease” to get in before others who expressed interest.   “It’s just a standard lease”, the Landlord says.

“Standard” leases can impose some serious burdens and present some nasty surprises to Tenants who haven’t sought legal advice.  Our commercial lawyers at Samford and The Gap are experienced in leasing matters.  We are here to review your Leases and assist you in getting a fair deal and help grow your business.