Franchise Lawyers in Melbourne

Buying a franchise runs to a timetable. The Franchising Code of Conduct gives you set periods to read the documents, get advice and, in some cases, change your mind. A franchise lawyer helps you use that time well, before the money and the lease are locked in.

If you need a franchise lawyer in Melbourne, we act for people buying into a franchise, franchisees already trading, and businesses that franchise their own system. Our business lawyers read the franchise agreement and disclosure document, explain them in plain English and point out the terms worth questioning before you commit.

The Code gives franchisees real protections, but it can’t turn a poor deal into a good one. If you’re a franchisor, the same Code sets out what you have to give prospective franchisees and when, and many of its obligations carry civil penalties.

The Code in brief

The Code is set out in regulations made under the Competition and Consumer Act 2010 (Cth). The current version started on 1 April 2025 and applies to franchise agreements entered into, renewed, extended or transferred from that date. Some newer rules, including compensation for early termination and limits on certain restraints, apply from 1 November 2025.

Your franchise timeline, step by step

Within 7 days of applying: the information statement

Once you formally apply for a franchise or express interest in one, the franchisor must give you the official information statement as soon as practicable, and no later than 7 days. It sets out the issues to think about before you buy.

Before you sign: the disclosure document and the agreement

Next, the franchisor must give you a disclosure document in the format the Code sets and a copy of the franchise agreement in the form it will be signed. The disclosure document covers matters such as the costs of setting up and running the franchise, supply arrangements and rebates, current and former franchisees, franchise-related legal action against the franchisor, its solvency, and significant capital expenditure you may have to pay for. Franchisors must also publish information on the Franchise Disclosure Register, which is free to search, so check that yours is there.

The 14-day reading period

In most cases, the franchisor can’t sign the agreement until 14 days after the latest of the events the Code lists, which include giving you the documents. If you pay money during that period and then ask for it back in writing, the franchisor must repay it within 14 days of your request. Use the time. It’s the cheapest point in the whole process to ask questions.

Before signing: the advice statements

The Code doesn’t force you to get advice, but the franchisor can’t sign with you until it has a signed statement for each of legal, business and accounting advice. Each statement comes either from the adviser, confirming they advised you, or from you, saying you received that advice or that you know you should get it and decided not to. This doesn’t apply to renewals or extensions. We give the legal advice. Your accountant and business adviser look at the numbers and the market.

14 days after signing: cooling off

For a new franchise agreement, you can end it by written notice within 14 days after entering into it. If the franchisor or an associate is providing the premises, there are separate 14-day windows tied to when you receive the lease terms. The franchisor must repay what you paid within 14 days, less its reasonable termination expenses if the agreement sets them out or explains how they’re worked out.

Cooling off doesn’t apply to renewals, extensions, or transfers that don’t involve a new agreement. You can opt out of it in writing, but only if you have, or recently had, an agreement with the same franchisor for the same or substantially the same business. Once the period ends, getting out is much harder, so get advice before then.

6 months before the end: the renewal notice

The franchisor must tell you in writing at least 6 months before the term ends (or 1 month before, if the term is shorter than 6 months) whether it intends to extend the agreement, offer a new one, or do neither. You aren’t automatically entitled to a further term, so read the renewal clause before you sign.

What we look for in a franchise agreement review

A review covers the whole deal, not only the parts the Code regulates. We look closely at the fees: the upfront fee, the royalties and every other charge, so you can see the real ongoing cost. We check any marketing or other specific purpose fund you have to pay into, and how it’s reported. And we look at your territory, including what the franchisor and other franchisees can do nearby and online.

We also check supply restrictions and who keeps the rebates, whether the lease and the franchise agreement end together, the capital expenditure the franchisor can require, the restraint you’ll be under afterwards, and what happens if the agreement ends early. For agreements entered into from 1 November 2025, the franchisor must provide for compensation if it ends the agreement early because it withdraws from the Australian market, rationalises its network or changes its distribution model.

If a dispute starts

Under the Code, a dispute begins with a written notice saying what it’s about, what outcome you want and what you think would resolve it. If you can’t agree within 21 days, either side can refer it to an alternative dispute resolution (ADR) practitioner for mediation or conciliation. Both sides must attend, and the Australian Small Business and Family Enterprise Ombudsman can publicise a franchisor that refuses to take part or pulls out. Arbitration only happens if you both agree to it in writing.

Unless you agree otherwise, the two sides share the cost of the ADR process equally, and each pays its own costs of attending. A franchise agreement can’t make you pay the franchisor’s costs of settling a dispute, and it can’t require court proceedings or ADR to take place outside the state or territory where your franchise is based.

Who we act for

We act for people buying a franchise, franchisees already trading, and franchisors. For franchisees, that means reviewing the documents before you sign and helping if things go wrong. For franchisors, we review franchise documents and processes against the Code. If premises are involved, our commercial leasing lawyers can review the lease alongside the agreement. If you’re buying an existing franchised business from its current owner, our buying a business page covers the due diligence side.

When to call a franchise lawyer in Melbourne

• The disclosure document has arrived and the 14 days have started.
• You’ve been told the terms are fixed and can’t change.
• You can’t find the franchisor on the Franchise Disclosure Register.
• You’ve been asked for a deposit before you’ve received the documents.
• There’s a dispute about fees, the marketing fund, supply or termination.
• Your term is ending and you don’t know whether it will be renewed.
• You’re a franchisor about to appoint your first franchisee or update your documents.

This page is general information, not legal advice. Every franchise is different, so get in touch about yours.

Franchise questions

How it works

1. Call (03) 9629 2211 or fill in our online enquiry form. Tell us whether you’re buying, already trading or a franchisor, and send the documents. If the 14 days are already running, tell us the date.
2. We clarify your instructions and read the agreement, the disclosure document and any lease.
3. We send a costs agreement and disclosure statement setting out the scope and our fees.
4. Once you accept, we start work with the Code’s deadlines in view.