For businesses that are thinking about franchising but are not yet sure of how their business model will operate as a franchise system, one of the main questions we receive is: how much support do I need to provide to franchisees? One of the central premises of franchising is to develop a system where the franchisor has a significant level of control on how the business functions. The flow on effect is that the franchisor will need to show how the franchise system works, and this is likely to require a level of training and support. Below, we set out the franchisor’s obligations as well as how much support you are actually required to provide to your franchisees.

No More Than Your Willing to Give

The short answer is that your franchise agreement and disclosure document should outline exactly the level of support you are willing to provide, and this can be as minimal as you would like. You will need to understand, however, that your franchise agreement includes what level of support you provide as a contractual term. Consequently, you will be obliged to provide your franchisees with this level of assistance. The main takeaway is, however, that some franchises provide support and some do not and this will come down to the way you draft your franchise legal documents.

How is Support Defined?

Support is a vague term and as such, franchise documents avoid including this word because of its level of ambiguity. When speaking to your solicitor about how you want to operate, it is better to outline what support you will provide and for what period. For example, the following areas would be considered support:

  • Initial training;
  • Ongoing training relating to the franchise system;
  • Updates on the franchise system;
  • Ongoing training relating to ‘running a business’ generally, e.g., Advice on your business plan; or
  • Responding to franchisee questions either by e-mail, phone or in-person.

The Franchising Code of Conduct

Aside from what the franchise legal documents include, the Franchising Code of Conduct outlines certain areas that the franchisor needs to consider when thinking about the level of support they need to provide. Here, clause 6 of the franchise agreement relates to good faith and is the primary reference to the franchisor’s obligation.

In particular, clause 6(3)(a) states that when assessing whether a party exercised good faith, it will consider “whether the party cooperated to achieve the purposes of the agreement”. This highlights the importance of the franchise agreement and expressly states that purpose is a relevant consideration. Overall, acting in good faith may require you to provide a level of support for the purpose of the agreement.

Key Takeaways

As a franchisor, understanding your obligations according to the Franchising Code of Conduct as well as the practical operation of your franchise agreement are important ways to ensure the smooth running of your franchise. You should take some time during the drafting phase of your franchise agreement to consider exactly how much support you would like to provide and how that fits in with the entire franchise system. If you have any questions, let our franchise team know on 1300 544 755. 

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Kristine Biason
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at

View Privacy Policy