Franchise Lawyers – Expert Guidance for Franchisees and Franchisors
At Parke Lawyers, we are Accredited Specialists in Commercial Law with extensive experience in franchising. Purchasing or operating a franchise can be an exciting and rewarding opportunity — but it also comes with risks, obligations, and complex legal requirements. Having expert legal advice from the outset is critical to protecting your investment and ensuring you understand your rights and responsibilities under the law.
Our specialist franchising lawyers provide clear, practical guidance and support to both franchisees and franchisors, from start-up through to dispute resolution.
Understanding Franchise Agreements
A franchise agreement is a formal, legally binding contract between a franchisor (the owner of the brand and system) and a franchisee (the person or entity buying the right to operate the business).
Typically, the franchisor grants the right to operate a business under their system, brand, or trademark in exchange for fees. In return, the franchisee must comply with strict operational requirements set out in the agreement and often in manuals, policies, and guidelines.
Franchisees should be aware that these agreements are usually weighted in favour of the franchisor. That is why independent legal advice is essential before signing.
Legal Protections and Disclosure Requirements
The new Franchising Code of Conduct (a mandatory industry code under the Competition and Consumer (Industry Codes—Franchising) Regulations 2024) commenced on 1 April 2025 and sets out specific rights and obligations for both franchisors and franchisees. Before entering into an agreement, the franchisor must provide the franchisee with:
- An information statement – outlining the risks and rewards of franchising
- A disclosure document – containing detailed information about the franchise system, financials, and key terms
- A copy of the Franchising Code of Conduct
- The franchise agreement itself
These documents must be given to the franchisee at least 14 days before signing so there is time to seek legal and financial advice.
Key Issues to Consider
When reviewing a disclosure document and franchise agreement, some of the most important issues include:
- Franchise territory – is it exclusive, shared, or overlapping with others?
- Online sales – will you benefit from or compete with the franchisor’s online sales channels?
- Purchasing power – are you required to buy stock or supplies from designated suppliers at set prices?
- Site selection – who decides where your business will operate and on what terms?
- Payments – including upfront fees, ongoing royalties, marketing contributions, and other charges
- Unilateral variation – can the franchisor change terms or rules without your consent?
- End of term arrangements – what happens when your franchise agreement expires? Do you have renewal rights or goodwill in the business?
Our franchising lawyers help you navigate these issues, conduct due diligence, and negotiate terms to ensure you are making an informed decision.
Due Diligence – Avoiding Risk
Before buying a franchise, it is vital to:
- Review the franchisor’s history and reputation
- Speak directly to current and former franchisees about their experiences
- Carefully check financial forecasts and assumptions
- Identify potential risks or restrictions hidden in the agreement
- Be alert to scams or misleading opportunities
Our team works alongside your accountant and financial advisers to give you a complete picture before you commit.
Franchise Disputes
Even with careful planning, disputes between franchisors and franchisees can arise. These may involve:
- Misrepresentation or non-disclosure
- Breach of the franchise agreement
- Termination or non-renewal of agreements
- Restraint of trade clauses
- Unfair contract terms
- Unpaid royalties or fees
At Parke Lawyers, we have extensive experience representing both franchisees and franchisors in disputes. We focus on resolving matters early through negotiation and mediation, but where litigation is unavoidable, we provide strong, strategic representation in court.
Why Choose Parke Lawyers for Franchising?
- Accredited Specialists in Commercial Law with decades of experience
- Expertise in both establishing and operating franchises
- Skilled negotiators and litigators in franchise disputes
- Personalised, practical advice tailored to your business goals
- A commitment to protecting your investment and reducing risk
Contact Parke Lawyers today to arrange a consultation with our franchising lawyers. Whether you are buying into a franchise, setting up a franchise system, or facing a dispute, we will provide the expert guidance you need to move forward with confidence.
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