Skip to content

What Are the Benefits of Joining a Franchise? 

As a potential franchisee, understanding the benefits of joining a franchise is paramount. In this model, the franchisor grants the right to operate the business, encompassing intellectual property, systems, processes, and know-how, to third parties—the franchisees. Typically, franchisees secure this right by paying an initial franchise fee and an ongoing royalty fee. This article offers insights to assist you in evaluating whether becoming a franchisee aligns with your business goals.

Benefits of Joining a Franchise 

Fundamentally, a franchise system involves the franchisor licensing the right to operate its business to franchisees, such as:

  • intellectual property;
  • systems;
  • processes; and
  • know-how.  


Franchisors typically grant this right to franchisees by charging an “initial franchise fee” and an ongoing royalty fee. This is calculated as a percentage of the franchisee’s revenue or profit.

The advantages of joining a franchise as a franchisee are numerous. Whether or not these benefits appeal to you serves as a good indicator of determining if this path is right for you. 

Established Business 

Starting a business can be daunting, especially with the challenges of building a brand and developing systems and processes. Joining a franchise system as a franchisee alleviates this hurdle, as these aspects of the business are typically already developed. The franchisor often provides an operations manual that outlines how to operate the business.

However, you should note that all new businesses, including franchises, experience growing pains. For example, you may experience this in establishing your franchised business within your particular location. 

Continue reading this article below the form
Loading form

Franchising Code 

Franchising in Australia is regulated by the Franchising Code of Conduct (the Code) administered by the ACCC. The Code imposes particular obligations on franchisors in conducting its franchise system. Additionally, it aims to ensure that franchisees receive protection in their dealings with franchisors. The Code also establishes a standard for how franchisors and franchisees should handle matters between them.

For example, there are disclosure obligations according to the Code, ensuring franchisees have the opportunity to receive legal, business, and financial advice.

Business Assistance 

In franchise systems, the franchisor will typically provide you with support and assistance in running your business. This includes initial training and ongoing support throughout the franchise term. Consequently, franchisees often do not need specific industry skills or experience before taking on the franchise business. This is because the franchisor provides the required level of training to operate the business. 

Front page of publication
Franchisor Toolkit: How to Franchise Successfully

Franchising your business? This free guide will guide you through key strategies, legal essentials, and tips for successful growth.

Download Now

Reduced Risk 

If a franchise network has proven to be fruitful, it has a perceived level of reduced business risk compared to starting a brand-new business. 

Key Takeaways 

Becoming part of a franchise allows you to gain entry to a well-established business, enjoy the protection provided by the Franchising Code, benefit from ongoing business support,  and experience a reduced risk of business failure. If this sounds appealing to you, becoming a franchisee may be highly beneficial to achieve your business goals.

If you are considering joining a franchise network, the next step is to ensure that your proposed franchise agreement is compliant and provides the necessary support. Our experienced franchising lawyers can assist you with this as part of our LegalVision membership. You will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on 1300 544 755 or visit our membership page.

Register for our free webinars

Demystifying M&A: What Every Business Owner Should Know

Online
Understand the essentials of mergers and acquisitions and protect your business value. Register for our free webinar.
Register Now

Social Media Compliance: Safeguard Your Brand and Avoid Common Pitfalls

Online
Avoid legal pitfalls in social media marketing and safeguard your brand. Register for our free webinar.
Register Now

Building a Strong Startup: Ask a Lawyer and Founder Your Tough Questions

Stone & Chalk Tech Central, Level 1 - 477 Pitt St Haymarket 2000
Join LegalVision and Bluebird at the Spark Festival to ask a lawyer and founder your startup questions. Register now.
Register Now

Construction Industry Update: What To Expect in 2026

Online
Stay ahead of major construction regulatory changes. Register for our free webinar.
Register Now
See more webinars >
Hanin Naji

Hanin Naji

Read all articles by Hanin

About LegalVision

LegalVision is an innovative commercial law firm that provides businesses with affordable, unlimited and ongoing legal assistance through our membership. We operate in Australia, the United Kingdom and New Zealand.

Learn more

We’re an award-winning law firm

  • Award

    2025 Future of Legal Services Innovation Finalist - Legal Innovation Awards

  • Award

    2025 Employer of Choice - Australasian Lawyer

  • Award

    2024 Law Company of the Year Finalist - The Lawyer Awards

  • Award

    2024 Law Firm of the Year Finalist - Modern Law Private Client Awards

  • Award

    2022 Law Firm of the Year - Australasian Law Awards