Reading time: 3 minutes

So, you’ve read through the information pack, and this franchise opportunity is looking pretty good. The chance to make great money, be your own boss, and rely on a trusted brand and systems in doing so sounds pretty tempting. So you’ve decided to go ahead, and are now in receipt of a big bundle of legal documents – what next? It’s important not to forget reviewing a franchise agreement.

Consult a franchise lawyer

The first thing you should do is consult a franchise lawyer. And we’re not just saying that because we’re franchise lawyers. Just with any other thick bundle of legal documents, the devil is often in the detail, and a franchise lawyer will be able to review the documents for inconsistencies, onerous clauses or clauses that do not comply with the Franchising Code of Conduct and other applicable legislation and legal principals. Use your franchise lawyer to your advantage, and don’t be afraid to ask them questions if you are having trouble interpreting a particular clause or how the agreement will apply to certain situations.

What else to look for

But there are other, more practical, things you can do on your own to determine if you really want to sign on the dotted line.

  1. Look at the basics of the agreement, usually found in the schedule to the Franchise Agreement. Such things as term, area and parties should all be clearly defined.
  2. Look at the itemization of expenses as contained in the Disclosure Document, and use those figures to prepare a cash flow forecast and detailed business plan.
  3. Look at the number, location and turnover rate of existing Franchises – this information will be contained in the Disclosure Document. Specific things to look out for include a high turnover or transfer rate (suggesting not all franchisees are successful), the existence of legal proceedings against the franchisor, and the location of other franchises. What business performs well in one state, will not necessarily do so in another.
  4. Read the Information Statement provided with the document – the law prescribes that this be provided to you, for a reason. It contains important information pertaining to the nature of the Agreement you are entering into.
  5. Talk to other franchisees – usually their details are listed in the Disclosure Document; it’s incredibly valuable to talk to someone who is already doing exactly what you propose to do; and
  6. Look at the ability to transfer or sell – usually, these provisions will be set out under a sub-heading “Transfer” in the Franchise Agreement. Before you sign up for a long term contract, you want to make sure your business will be saleable if, for whatever reason, you cannot carry it out for the entire term.


Whatever you do, don’t just sign that big bundle of legal documents blindly. Franchising is an expensive, long term commitment wherein you will be largely reliant on the business practices and success of your franchisor. It is important to take careful steps in reviewing a franchise agreement.

If you are in need of a franchise lawyer to help you sort through the documents or undertake a review, get in touch with us at LegalVision.


Employment Essentials for Tech Businesses

Thursday 5 May | 11:00 - 11:45am

Protect your tech business and your employees by understanding your employment legal obligations. Register for our free webinar today.
Register Now

How to Protect and Enforce Your Trade Mark

Wednesday 11 May | 11:00 - 11:45am

Protect your business’ brand from copycats and competitors. Register for this free webinar to learn how.
Register Now

Corporate Governance 101: Responsibilities for New Directors

Friday 13 May | 11:00 - 11:45am

If you are a new company director, join our free webinar to understand your legal compliance obligations. Register today.
Register Now

How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer