Loading...
Loading...
An outline template for the core commercial terms of a franchise — but subject to the Franchising Code of Conduct.
A franchise agreement grants a franchisee the right to operate a business using a franchisor's brand, systems, and know-how, in exchange for fees. In Australia, franchising is regulated by the Franchising Code of Conduct (a mandatory industry code under the Competition and Consumer Act 2010 (Cth)), which imposes strict pre-contractual disclosure and cooling-off obligations. This template is a starting point only — every franchise agreement should be reviewed by a franchising lawyer before signing.
Common situations where this document is the right tool for the job.
You are granting franchise rights for the first time as a franchisor.
A franchisee is entering a new franchise system.
Existing franchise agreements are being renewed or restructured.
A multi-unit development agreement is being contemplated.
You need a starting-point document to take to a franchising specialist lawyer.
You want to understand the key commercial levers in a franchise deal.
The essential provisions every franchise agreement should include.
Franchisor and franchisee, with ABNs and addresses.
The right to operate a franchised business using the franchisor's brand, system, and IP in a defined territory and/or location.
Initial term (usually 5-10 years) and renewal options on specified terms.
Exclusive or non-exclusive territory, or a specific approved location.
Initial franchise fee (lump sum), ongoing royalty (percentage of revenue, typically 5-10%), marketing fund contribution, technology fee, training fee.
Franchisor's obligation to provide initial training, operations manual, ongoing support, and updates to the system.
Comply with the system, meet quality and brand standards, attend training, pay fees on time, achieve minimum performance targets.
Franchisor's brand fund contributions, franchisee's local marketing obligations, approval rights over local marketing.
Required or approved suppliers, franchisor rebates (which must be disclosed), rules around sourcing.
Grounds for termination by franchisor or franchisee, transfer process (assignment requires franchisor consent), post-termination restraints.
The Franchising Code of Conduct requires a disclosure document, a cooling-off period, and minimum contract terms. Operating outside the Code attracts civil penalties up to $10 million per breach. A proper franchise agreement is only the final step after Code compliance.
Franchising works because every franchisee operates to the same standards. The agreement is the mechanism that enforces that uniformity — deviation destroys brand value.
Franchise fees (initial, royalty, marketing, technology) determine whether the unit economics work for both franchisor and franchisee. Getting the fee structure wrong is the most common reason franchise systems fail.
Franchisees need the ability to sell their business; franchisors need control over who buys. A clear transfer clause balances both — the franchisee can cash out; the franchisor vets the incoming operator.
Yes. A franchise agreement is an ordinary commercial contract under Australian law. Electronic signatures on it are recognised as valid under the Electronic Transactions Act 1999 (Cth)and the state-based equivalents (e.g. Electronic Transactions Act 2000 (NSW), Electronic Transactions (Victoria) Act 2000, Electronic Transactions (Queensland) Act 2001).
Under section 10 of the Commonwealth Act, an electronic signature is valid if it identifies the signer, indicates their intent to be bound, and uses a method as reliable as appropriate in the circumstances. SignBolt captures timestamp, IP address, and signer identity — which meets this "reliable method" test for ordinary commercial signing.
Certain document types are excluded from electronic-signing provisions in some states (wills, statutory declarations in some contexts, land titles documents). A franchise agreement is not in those excluded categories — electronic signature is valid.
This page is general information, not legal advice. For high-value or unusual arrangements, obtain a one-off review from a qualified Australian legal practitioner.
Questions we get about the Franchise Agreement template.
The Franchising Code of Conduct is a mandatory industry code under the Competition and Consumer Act 2010 (Cth) that regulates franchising in Australia. Key obligations: franchisor must provide a disclosure document at least 14 days before the franchisee signs or pays anything; a 14-day cooling-off period applies after signing; mandatory good-faith obligations; restrictions on general-release clauses; requirements for marketing-fund reporting. Breaches attract civil penalties and are pursued by the ACCC.
Absolutely yes. The Franchising Code is detailed and technical. A non-compliant franchise agreement can expose the franchisor to ACCC enforcement and civil penalties, and can allow franchisees to rescind agreements. This SignBolt template is a starting point for understanding the commercial terms — it is not a substitute for proper legal documentation reviewed by a franchising specialist.
14 days after the franchisee signs the franchise agreement or makes a payment, whichever comes first. During the cooling-off period, the franchisee can terminate with a refund of all money paid, less the franchisor's reasonable costs. The cooling-off right cannot be waived or contracted out of.
Yes. Franchise agreements are covered by the Electronic Transactions Act 1999 (Cth). Electronic signatures are valid. The disclosure document and cooling-off notices can also be delivered electronically. Maintain the full audit trail for compliance purposes — the ACCC can require franchisors to evidence Code compliance, and SignBolt's timestamped audit trail is exactly the kind of record they accept.
Typical fees: initial franchise fee (often $20-100k), ongoing royalty (percentage of revenue, typically 5-10%), marketing fund (1-4% of revenue), technology fee, renewal fee. All fees must be disclosed in the disclosure document. Fees that are not disclosed cannot later be imposed. Unconscionable or misleading fee structures can be challenged under the ACL.
Grounds for termination are set out in the agreement and the Code. Franchisor can terminate for material breach (usually after a cure period), insolvency, or specific events defined in the agreement. Franchisee rights to terminate are more limited. Unreasonable termination by the franchisor can be challenged under the Code's good-faith obligations.
The franchisee can generally assign their franchise to a buyer, but the franchisor's consent is required. The franchisor can refuse consent on reasonable grounds (buyer lacks experience, financial capacity, or doesn't meet system standards). Consent cannot be unreasonably withheld. On transfer, the incoming franchisee signs the current form of franchise agreement, which may differ from the outgoing franchisee's agreement.
Free plan covers 3 documents per month — more than enough to get this signed today. No credit card required.