Business law
Buying a franchise: a legal checklist for franchisees
Before buying or renewing a franchise, understand the connected commitments. Makin Advisory can help you review the franchise agreement, disclosure documents and related lease or guarantee so you can make an informed commercial decision.
Is this the help you need?
For prospective franchisees, existing franchisees renewing or transferring an arrangement, and buyers assessing a franchise business.
How Makin Advisory can assist
Review the agreement and disclosure material as a connected package.
Identify applicable Franchising Code and transition-rule questions.
Explain fees, mandatory spending, territory and supplier restrictions.
Coordinate lease terms, guarantees and franchise commitments.
Prepare negotiation priorities and review renewal, transfer and exit provisions.
What a review involves
Provide the agreement, disclosure documents, manuals or schedules supplied, lease, guarantee and proposed transaction dates. Include sales representations and your financial assumptions. Legal review identifies obligations and points to investigate; accounting advice remains important for the financial model.
Request a franchise agreement review
Decisions worth getting right
A recognised brand does not remove business risk. Compare entry costs with ongoing royalties, marketing contributions, technology, wages, rent and future upgrades. Ask whether royalties depend on turnover even where profit is low, and budget for a slow opening or seasonal demand.
Territory, required suppliers and exit terms affect your flexibility. Check how online sales and other outlets are treated, what consent a transfer requires and which guarantees continue. The Code changed in 2025, with transitional provisions: the applicable position depends on the agreement’s dates and the transaction, not a general assumption that every new rule applies identically.
Frequently asked questions
Can a franchise agreement be negotiated?
You can request changes, but acceptance is not guaranteed. Identify the issues that affect your decision and assess the final offered terms rather than assuming difficult clauses will never be used.
Does a disclosure document prove the franchise will succeed?
No. It provides information to assess. The proposed site, operating costs, management and demand still need independent investigation and financial assessment.
Which Franchising Code applies to my renewal?
The dates and nature of entry, renewal, extension or transfer matter. The 2025 Code has transition rules, so have the agreement history and proposed transaction assessed against current official guidance.
Should the lease be reviewed with the franchise agreement?
Yes where premises are part of the arrangement. Different expiry dates, fit-out costs and assignment requirements can undermine a planned renewal, sale or exit.
Will selling the franchise release my guarantee?
Do not assume so. Check the guarantees given to the franchisor, landlord and financier and the release documents needed. A sale may not end each separate obligation.
What affects the cost of this work?
Fees depend on the agreed scope, complexity and document volume. Enquire with the documents available and your deadline so we can discuss the work required and its cost before you decide to proceed.
Official resources
Related help
Take the next step
Makin Advisory serves Gold Coast and Brisbane clients remotely and in person by appointment. Tell us what you need help with and any relevant deadline; prefer no sensitive documents at first enquiry.
Tell us what you need help with
Tell us briefly what you need help with and any relevant deadline. Please do not include sensitive documents in your initial enquiry.