Entering a franchise agreement

Understand what you are signing before you commit to the franchise.

A franchise agreement is one of the most significant commercial commitments you will make. It governs your business for the entire term, limits what you can do with it, and dictates what happens when things go wrong with the franchisor. Before you sign, you need to understand exactly what you are agreeing to – not just the headline opportunity, but the obligations, restrictions, and risk profile buried in the document.

Entering a franchise agreement

ADLV Law will review the franchise agreement and disclosure document in full, advise you on the key terms and risks, and ensure you enter the arrangement with a clear understanding of your rights, obligations, and options.

What does the Franchising Code of Conduct require?

The Franchising Code of Conduct is a mandatory industry code that governs the relationship between franchisors and franchisees in Australia. It requires franchisors to provide a disclosure document at least 14 days before the franchisee enters the agreement, imposes good faith obligations on both parties, and sets out specific requirements around termination, dispute resolution, and end-of-term arrangements. The Code provides franchisees with a range of protections that the franchise agreement alone may not, and understanding these protections is an important part of any franchise agreement review.

Can I negotiate the terms of a franchise agreement?

Sometimes, but not always. Franchisors with established and consistent systems often resist changes that would create inconsistency across their network. That said, some franchisors are open to negotiating specific terms – particularly around territory, renewal rights, and transfer conditions – for a franchisee who represents a strong commercial opportunity. We will advise you on which terms in your specific agreement are worth raising and how to approach the franchisor.

What are my rights if the franchisor wants to terminate my franchise?

Your rights depend on the terms of the franchise agreement and the Franchising Code of Conduct. The Code imposes significant procedural requirements on franchisors before they can terminate for breach – including a notice period and an opportunity to remedy. Termination without cause is more restricted. If a franchisor is seeking to terminate your franchise, we strongly recommend getting legal advice promptly, as the time limits for responding under the Code are strict.

What happens to the franchise when the term ends?

The end of a franchise term is one of the most important provisions in the agreement and is often overlooked at entry. Key issues include whether you have a right of renewal, what conditions attach to renewal, whether the franchisor can refuse renewal without compensation, and what restraints of trade apply after the agreement ends. The Franchising Code imposes some requirements around end-of-term arrangements, but the specifics vary significantly between agreements. This is one of the areas we pay close attention to in any franchise review.

Know what you are signing

Identify the risks early

Negotiate from an informed position

Get your franchise agreement reviewed before you commit.

Now you understand the essentials. Let us show you exactly how we help families like yours secure their legacy.

A franchise agreement is a long-term commitment. Make sure you understand it.

Franchise agreements are drafted by the franchisor and designed to protect the franchisor. Many franchisees sign without fully understanding the restrictions on how they can operate the business, what happens if the franchisor changes the system, or what their exit rights are if the relationship breaks down. By the time a problem arises, you are locked into a long-term agreement with limited options.

We will review the franchise agreement and disclosure document in full.
We will advise you on the key terms, obligations, and risks - including renewal, termination, and restraint of trade provisions.
We will identify any terms that are unusual, onerous, or worth negotiating.
We will advise on the Franchising Code of Conduct protections available to you.
We will prepare any questions or negotiation positions you want to put to the franchisor.

When the franchise opportunity looks right but the agreement still needs review

You have identified a franchise opportunity that fits your goals. You have done your commercial research. The franchisor has presented the business favourably and the numbers make sense. Now you have the franchise agreement and disclosure document in front of you – hundreds of pages of legal documentation that will govern your business for the next five, ten, or twenty years.

You know you should get advice before you sign, and you want someone who can cut through the document and tell you what it actually means for you.

What's included in your franchise agreement review

The franchise agreement favours the franchisor. Make sure you understand it before you sign.

Most people who enter franchise agreements have done their commercial research carefully. They understand the brand, the system, and the financial projections. What they have not read carefully, with the right questions in mind, is the franchise agreement itself. The restrictions on territory, the obligations to purchase approved supplies, the circumstances in which the franchisor can terminate without compensation, the restraint of trade that prevents you from operating in your industry for years after the agreement ends.

These are not details. They are the terms that will govern your business for the life of the agreement, and they are written by the other side.

From an unreviewed agreement to a clear-eyed commitment

We review the franchise agreement and disclosure document in full and give you a clear picture of what you are actually agreeing to – the obligations, the restrictions, the risk profile, and the terms that matter most. We flag anything that is unusual or worth raising with the franchisor, and we advise you on what protections the Franchising Code of Conduct provides. By the time you sign, the decision is fully informed.

Your franchise entry roadmap.

From document review to an informed decision.

Document review

We review the franchise agreement, disclosure document, and any associated documents provided by the franchisor.

Advice and risk summary

We provide written advice on the key terms, obligations, risks, and any provisions we recommend you raise with the franchisor.

Negotiation support

If you want to negotiate any terms, we assist you in preparing and putting your position to the franchisor.

Commercial lawyers with experience in franchise law and the Franchising Code of Conduct.

We know that franchise opportunities often come with time pressure. The franchisor wants a decision, and the commercial momentum is pushing you toward signing. We also know that the time it takes to review the agreement properly is nothing compared to the years you will spend operating under it. Our team reviews franchise agreements regularly and knows exactly what to look for and what matters most.

We understand you want to know the cost, before we get started.

We will map out our process, from beginning to end, so you know what the journey will look like before you get started.

We will provide you with a clear and detailed Work Proposal covering each step along the way.

Our fair fees are all-inclusive. No hidden costs for telephone calls, emails, photocopying, couriers, or coffee.

Our great lawyer guarantee

We want to be part of your team over the long term. We achieve this by adhering to these core principles:

Take the time

We listen carefully to understand what you want to achieve. Then we thoroughly explain our advice and step you through the documents. You can be sure you know the full consequences.

Share our knowledge

We will pass on as much knowledge as we can, so you can make your own informed decisions. We want to make you truly independent.

Stick to our knitting

We only do what we're good at. You can be confident that we know what we're doing and don't pass on the cost of our learning.

Work as one team

Someone will always be available to answer your questions, or point you in the right direction. You will also benefit from a range of perspectives and experience.

Fair pricing

For advice and documents, we provide a fixed or capped quote so you don't take price risk. If you're in a dispute, we map out the process and costs so you know what to expect.

It's your show

We're not in this for our egos. We're in it for a front row seat to witness your success.

Get your franchise agreement reviewed before you commit.

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Entering a franchise agreement

Understand what you are signing before you commit to the franchise.