Legal Services - Cost Philosophy and Indicative Costs
Often the first question a client asks us is 'what is the cost'. At Aventus we pride ourselves on providing cost effective advice, at a price that reflects the value the client receives.
Eveyone knows that lawyers aren't cheap. Our 'hourly rates' seem astronomical to many, particularly those who have had little or no contact with lawyers in the past.
At Aventus, our hourly rates vary betwen $250 and $400 per hour (exclusive of GST) depending on the experience of the practitioner involved. Having said this, more often than not we regularly provide 'fixed fee', or 'capped fee' solutions to our clients so that they have comfort at the level of legal fees they will incur, and can make a value judgement as to the results/advice they will receive from us.
For example, we are regularly asked to review and provide advice on franchise agreements. The cost of doing so is typically $1,500.00 (exclusive of GST), depending on the particular franchise system and the complexity of the documentation. For this, the client will receive a comprehensive review of their franchise documentation, explanations of the key terms and conditions, and recommendations as to amendments. If the client wishes we can liaise directly with the Franchisor as to the requested amendments. As a result of our service, clients have a clear understanding of what they are entering into, and in many cases get a 'better business' (often of higher value and with ongoing savings) as a result of our advice and suggested amendments. In these circumstances, the original outlay is often insignificant when compared to the value the client receives. It is more an 'investment' rather than 'cost'.
Similarly, the cost to 'set up' a franchise system can typically cost between $10,000.00 and $20,000.00 (excluding GST). The range of cost reflects the myriad of issues that potential franchisors must deal with along the route to becoming a fully fledge franchise system. Again, we are happy to discuss particular projects, and provide a fixed or capped quote once the job is properly scoped. Once again though, a properly set up franchise system, including professional documentation and risk management advice is an investment that provides a return for the duration of the life of the system itself, and forms the intrinic value of the system should the franchisor ever seek to sell or introduce investors in the future.
However there are circumstances where the services of a lawyer can definitely be seen as a cost rather than an investment. Where a franchisor or franchisee (or other business) is in dispute, money paid to a lawyer to assist is often a bitter pill, and merely adds to the distress such a dispute can evoke. At Aventus we recognise these difficult times and when engaged to assist parties in a dispute, always seek to find the most cost effective solution, whilst protecting our clients rights at every stage.
We hope this information provides you with some guide as to how Aventus approaches the issue of costs. We seek to provde the best quality advice and service, at the most cost effective rate possible.