Franchise
Have you selected the perfect franchise and want to seal the deal? Or are you still looking at opportunities? Maybe you’re the franchisor? Whatever stage you’re at, or part you have to play, a good franchise lawyer is a must.
What you need to know about the law and franchises
There’s a great deal of work to be done when setting up a franchise -from the preparation of franchising agreements to ensuring all the requirements under Australia’s Franchising Codes are met. You will need help.
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All the laws that generally apply to commerce apply to franchising in Australia. Furthermore, there is a Franchising Code of Conduct that must be followed.
The Code is often amended so it’s important to understand it in its most current form to operate legally in the franchising sector. And that’s where we come in.
Benefits of our franchise legal service
As well as offering legal services to franchisors and franchisees, we understand and appreciate the commercial realities of franchising – not every lawyer does!
But most importantly, Tan and Tan Lawyers aim to be around for the life of your business and help drive it to success.
Affordable fees
You might just be starting out, so you don’t want to have to worry about expensive legal costs! Our service is designed to give you the right advice without costing a fortune.
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Get the right legal advice for your franchise now.
Franchise FAQ's
Do I need a lawyer before signing a franchise agreement in Australia?
Yes, getting independent legal advice before signing a franchise agreement is strongly recommended and is, in fact, a requirement under Australia’s Franchising Code of Conduct. The Code requires that franchisees receive a disclosure document, a copy of the franchise agreement, and a copy of the Code itself at least 14 days before entering into the agreement or making any non refundable payment. Having a lawyer review these documents within that disclosure period is essential to understanding what you are committing to.
We regularly advise prospective franchisees on the legal and commercial implications of franchise agreements, including the obligations they impose, the fees involved, the territory restrictions, and the conditions under which the agreement can be terminated or renewed. Because we understand the commercial realities of franchising, not just the legal technicalities, our advice is practical and focused on helping you make a well informed decision. Free initial advice is available by email, and low cost phone or Zoom consultations allow you to get clarity before the disclosure period runs out.
What is the Franchising Code of Conduct and why does it matter?
The Franchising Code of Conduct is a mandatory industry code under the Competition and Consumer Act 2010 that regulates the relationship between franchisors and franchisees in Australia. It sets out requirements for disclosure, good faith dealing, dispute resolution, and the terms that must be included in franchise agreements. All parties operating in the franchising sector must comply with the Code, and non compliance can result in penalties, disputes, and the invalidation of contractual terms.
One of the most important things to understand is that the Code is frequently amended, which means that obligations that applied when a franchise system was first established may have changed since. We keep up to date with every amendment so that our clients, whether franchisors or franchisees, are always operating in line with the current requirements. If you are entering a new agreement, renewing an existing one, or simply want to check that your operations are compliant, we can review your situation and advise on what needs to change. You can reach us by email or phone to discuss your specific circumstances.
What legal services does a franchise lawyer provide for franchisors?
A franchise lawyer assists franchisors with the preparation and drafting of franchise agreements, disclosure documents, and operational manuals that comply with Australia’s Franchising Code of Conduct. Beyond the initial setup, legal support extends to managing franchise renewals, territory expansions, franchisee disputes, compliance audits, and amendments required when the Code is updated.
We offer legal services to franchisors that go beyond standard document preparation. Because we understand the commercial realities of running a franchise system, our advice is shaped by what actually works in practice, not just what satisfies the letter of the law. Our goal is to be around for the life of your business, providing ongoing support as your network grows and the regulatory landscape evolves. If you are establishing a new franchise system or need to update an existing one to reflect recent Code changes, we can provide clear, affordable guidance. Free initial advice is available by email to help you understand what is involved before committing to any engagement.
What should I look for in a franchise agreement before buying a franchise?
Before buying a franchise, you should carefully review the franchise agreement for several critical elements: the total upfront and ongoing fees (including marketing levies and royalties), the territory you are being granted and whether it is exclusive, the conditions for renewal and termination, the obligations you must meet during the term, any restraint of trade clauses that apply after the agreement ends, and what happens to your investment if the franchise system is sold. These terms directly affect the viability and profitability of your business, so understanding them before you sign is essential.
We review franchise agreements for prospective franchisees and explain each of these elements in plain language so that you know exactly what you are agreeing to. Our advice covers both the legal implications and the commercial practicality of the terms, because a clause that is technically lawful can still be commercially unreasonable. If we identify terms that warrant negotiation, we can advise on how to approach the franchisor constructively. A low cost phone or Zoom consultation is a practical first step if you have received a disclosure document and want to understand it before the 14 day period expires.
What can I do if I have a dispute with my franchisor or franchisee?
If a dispute arises between a franchisor and a franchisee in Australia, the Franchising Code of Conduct requires that the parties first attempt to resolve the matter through internal processes and, if that fails, through mediation before taking the matter to court. The Code sets out a structured dispute resolution process that both parties are obligated to follow, and failure to engage with this process can weaken your position if the dispute escalates to litigation.
We advise both franchisors and franchisees on their rights and obligations during disputes, including how to initiate the formal complaint process, how to prepare for mediation, and when legal proceedings may become necessary. Early legal advice is particularly important in franchise disputes because the relationship is ongoing and the way a dispute is handled can affect the viability of the business long after the specific issue is resolved. You can contact us by email for free initial advice, or arrange a low cost phone or Zoom consultation if the matter is urgent and you need practical guidance on your next steps.
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