At Argon Law, our experienced franchise lawyers provide end-to-end legal support for both franchisors and franchisees across Brisbane, the Sunshine Coast, and Queensland.
Franchising is a dynamic business growth strategy governed by the Australian Franchising Code of Conduct. Navigating this complex legal framework requires tailored advice from lawyers who understand every stage of the franchise lifecycle.
Whether you’re launching a new franchise, buying into an existing franchise business, taking up new franchise territories direct from the franchisor, looking to review your existing franchise agreement, or resolving disputes under the Australian Franchising Code of Conduct, we provide legal support for both franchisors and franchisees in plain-English to protect your business interests.
Franchising offers a proven path for growth, but the 2025 updates to the Franchising Code – effective from April 1, with key changes like enhanced disclosures and early termination compensation from November 1 – add layers of compliance complexity.
Whether you’re a franchisor or franchisee, our team of franchising lawyers are ready to help you navigate all aspects of franchise-related law and navigate these requirements, ensuring your agreements are robust and enforceable, here on the Sunshine Coast.
With our expertise, you can focus on growth while we handle the legal intricacies of the Franchising Code of Conduct.
We assist entrepreneurs and established brands in creating, launching, and expanding their franchise systems. Our franchising services include:
If you are looking to buy into a franchise, or are considering taking up new franchise territories direct from the franchisor, our lawyers offer practical guidance to protect your interests, such as:
Franchising can be a great alternative to setting up your own business from scratch, allowing you to operate under a pre-established brand and to sell its products or services for a specified time.
However, it is important to carefully consider all of your options before buying a franchise. Once you sign a franchise agreement you are bound to a wide range of responsibilities.
Watch our video below or read on to learn about the key ongoing obligations that you should consider when entering into a franchise.
Most franchisees will need to lease premises in which to operate. Before signing a retail lease make sure that you understand your rights and obligations, including:
A poorly negotiated lease could cost you a lot of money, particularly if your business does not succeed and you need to get out of the lease.
The franchisor often establishes a marketing fund, to which franchisees contribute money to be used to drive marketing campaigns for the brand. A well-run and successful marketing fund can be beneficial to you. However, you should be aware of the financial commitment involved, as contributions are usually ongoing for the term of the franchise and are often determined as a percentage of gross sales.
Franchisees may be required, at times, to undertake capital expenditure and this may be by way of updated branding, shop fit-out (separate to the Landlord’s requirement above) or even site-relocation.
To maintain standards and performance a franchisor may set minimum performance criteria and compliance obligations. Even if your franchise does very well in the early stages of the business, you may be required to maintain this success for the duration of the term to satisfy any minimum performance criteria. You should be aware of the consequences if you fail to meet these obligations.
It is often the case that franchisees will have to purchase products from the franchisor or other nominated suppliers. You may also be required to maintain minimum stock levels. You should carefully consider whether such minimum stock levels are commercially viable and make enquiries to ensure that the products you are required to purchase from the franchisor are reasonably priced, as part of your due diligence before entering into a franchise agreement.
Before signing the franchise agreement, it is important you obtain as much information about the franchise as possible.
To assist you, franchisors must give you:
• an information statement which is a short document which sets out some of the risks and rewards of franchising;
• a disclosure document, the franchise agreement (in its final form), and a copy of the Franchising Code at least 14 days before you sign an agreement or make a non-refundable payment.
If you’re ready to launch your franchise or are seeking more information about a potential agreement, get in touch with the Argon Law team and one of our experienced franchise lawyers would be happy to assist.
A. Franchising is a proven business model regulated by the Australian Franchising Code of Conduct, but an understanding of franchise agreements, disclosure requirements, and compliance obligations is essential before signing any legal documents.
A. Common pitfalls include mismatched leases, hidden fees, performance pressures, and supplier lock-ins. Seeking out a franchise lawyer to review your franchise agreement can help to uncover these risks before signing.
A. Enquire about total costs (initial/ongoing), market saturation, 5-year brand plans, refit cycles, and existing franchisee earnings.
A. Updates include better risk disclosures, compensation for early exits (Nov 2025), and stricter good faith duties – aiming for fairer franchisor-franchisee dynamics.
A. While not legally mandated, it is highly recommended to have an experienced franchising lawyer on your side to support a franchise agreement review. A franchise lawyer can help negotiate protections and identify non-compliant terms.
From reviewing an initial agreement, to navigating disputes, through to exiting, our team of experienced franchise lawyers here on the Sunshine Coast are ready to guide you through any aspect of franchise law to achieve the best outcome.
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