Franchising Lawyers Melbourne Specialists
Franchising
Strategic Legal Support To Structure & Launch Your Franchise
Building Your Franchise The Right Way
We help franchisors and franchisees establish strong foundations by creating fair, compliant and commercially sound agreements. Our advice focuses on long-term relationships, clear obligations and practical frameworks that support growth rather than hinder it.
Franchising Feasibility Advice – Assess whether franchising suits your business model and long-term goals.
Franchise & Disclosure Agreements – Draft agreements and disclosure documents that encourage strong, lasting commercial relationships.
Franchising Structures & Supply Terms – Advise on licensing, reseller, distribution or agency models, plus terms of trade, supply agreements and commercial conditions.
Compliance & Business Governance – Ensure alignment with the Franchising Code of Conduct and other key regulations such as employment, consumer and securities laws.
Legal Solutions for Purchases, Compliance & Dispute Resolution
Franchise Operations & Risk Control
Franchise arrangements involve complex documents, legal obligations and sometimes disputes. We give clear, plain-English guidance so you understand your rights, protect your investment and resolve issues without jeopardising valuable commercial relationships.
Franchise Purchase Reviews – Review, explain and negotiate franchise documents, leases, sale contracts and disclosure statements.
Due Diligence & Settlement – Identify risks, verify obligations and manage settlement to ensure the franchise purchase is financially and legally sound.
Relationship & HR Support – Assist with employment contracts, operational documentation and IP protection to support day-to-day compliance.
Franchise Dispute Resolution – Resolve conflicts efficiently and diplomatically, using Code-based dispute processes or litigation only when necessary.
Practical Legal Expertise for Every Stage of Your Franchise Journey
Enhanced Franchise Support Services
Franchising involves more than agreements. These services show how we support franchisors and franchisees with clear legal frameworks and practical protection.
Franchise Strategy
Assess whether franchising is right for your business and identify the most suitable expansion model.
Franchise Agreements
Draft clear franchise and disclosure documents that protect rights and set realistic expectations.
Commercial Structures
Advice on licensing, reseller, distribution and agency arrangements tailored to your commercial goals.
Code Compliance
Ensure your franchise meets Franchising Code of Conduct and related regulatory obligations.
Contract Review
Review and negotiate franchise documents, leases and sale contracts in plain, understandable language.
Due Diligence
Identify risks and obligations before you commit, ensuring the franchise purchase is commercially sound.
HR & IP Protection
Prepare employment agreements and secure brand assets to support daily operations and growth.
Dispute Resolution
Resolve franchise disagreements quickly through negotiation, mediation or litigation if required.
Quick Answers To Common Franchise Concerns
Franchising FAQs
Franchising has complex documents and commitments. These FAQs simplify key points so you can make informed decisions before signing or expanding.
What is a Franchise?
A franchise is a sophisticated business model aligned with a distinctive brand or trademark. In this arrangement, the parent company (the franchisor) – such as McDonald’s, Subway, or 7-Eleven – grants an entrepreneur, corporation, or trust (the franchisee) the license to operate their own enterprise (the franchised business) under the franchisor’s established brand and operational system.
This might include using proprietary recipes, marketing strategies, and management techniques. In return for access to this proven business framework, the franchisee typically pays an initial franchise fee and ongoing royalties or fees throughout the contract duration.
In Australia, the franchise industry is regulated by the Franchising Code of Conduct (the Code), a mandatory set of rules enacted under the Competition and Consumer Act 2010. This comprehensive legislation, overseen by the Australian Competition and Consumer Commission (ACCC), governs all franchise operations within the country and provides crucial safeguards for franchisees.
These protections may cover areas such as disclosure requirements, cooling-off periods, and dispute resolution procedures. Any business arrangement that meets the Code’s definition of a franchise – which could include traditional retail franchises, mobile franchises, or even some distribution agreements – must adhere to all stipulations outlined in the Code. It is the franchisor’s responsibility to ensure full compliance with these franchise law & regulations, failure of which could result in significant penalties imposed by the ACCC.
How Does a Franchise Agreement Work?
A franchise agreement grants another party the right to operate a business supplying or distributing goods or services under predetermined franchise systems by the franchisor. It draws upon the intellectual property and know-how of the franchisor to run (usually) under its brand. The agreement typically includes information about the agreement’s duration, the obligations of each party, payable fees, etc.
How Do You Start a Franchise Business?
When starting a business, some important things you need to consider are the structure, legal documentation and fees. Franchise relationships in Australia are regulated by the Code so we encourage getting advice from a franchise lawyer in Melbourne to ensure your and your franchise’s compliance from start to end.
Are Franchises Considered Small Businesses?
Yes, a franchise can be considered a small business depending on its structure, consolidated revenue, the value of the consolidated gross assets, and the company and entities it controls.
According to the Australian Securities and Investments Commission (ASIC) and the Corporations Act 2001, a small business can be structured as a sole trade, company, joint venture, or partnership.
Is Franchising Profitable?
The Australian franchising sector offers lucrative opportunities, but profitability hinges on multiple elements. Key factors include selecting the right franchise brand, securing an optimal location (e.g., bustling shopping centres or high-traffic suburban areas), aligning with market trends (for instance, the growing demand for health-focused or tech-oriented businesses), and ensuring the franchise model’s long-term viability.
Equally crucial are the support systems provided by franchisors, which may include training programs, marketing assistance and operational guidance. The franchisee’s own business skills, financial management abilities and dedication to the venture play pivotal roles in achieving success.
Australia’s franchise landscape is robust and varied, encompassing sectors from fast food (eg. McDonald’s, KFC) to retail (eg. Harvey Norman, Bakers Delight) and services (eg. Mortgage Choice, Poolwerx). While many franchise partners report strong profits and growth, prospective franchisees should exercise due diligence. This includes thoroughly researching the franchise’s track record, consulting with existing franchisees and seeking advice from franchise lawyers in Melbourne and accountants before signing any agreements with the Franchise Council of Australia-registered brands.
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