Franchise agreement review checklist
Franchise agreements are governed by the Franchising Code of Conduct and carry heavy disclosure and good-faith obligations. This checklist walks through a franchisee-side review.
This is a 12-step checklist for reviewing an Australian franchise agreement. It covers the Franchising Code disclosure requirements, cooling off, fees, territory, marketing fund, and end-of-term rights.
The checklist
Confirm disclosure document provided
Confirm the Information Statement and Disclosure Document were provided at least 14 days before signing.
Check cooling-off period
Confirm the franchisee has 14 days after signing to terminate and recover deposits.
Review fees and payments
Check upfront fees, royalties, marketing fund contributions, and any other recurring payments.
Check territory and exclusivity
Confirm the territory, exclusivity rights, and any reserved rights for the franchisor.
Review operations manual rights
Check the franchisor's right to change the operations manual and the impact on the franchisee.
Check supply arrangements
Review any exclusive supply, approved supplier, or rebate arrangements.
Review marketing fund
Check marketing fund contributions, use, and annual reporting obligations.
Check transfer and assignment
Review the franchisee's right to transfer and the franchisor consent conditions.
Review termination rights
Check termination for breach, special circumstances, and the notice requirements.
Check end-of-term and renewal
Review rights at end of term, any renewal option, and goodwill treatment.
Review restraints of trade
Check post-term restraints — scope, duration, and enforceability.
Check dispute resolution
Confirm the dispute resolution pathway and access to the Franchising Mediation Adviser.
When this checklist applies
Use this checklist when acting for a prospective franchisee reviewing a new franchise agreement or a renewal.
Common pitfalls
- Franchisor changing the operations manual to add unilateral fees
- Marketing fund without financial transparency
- Overbroad end-of-term restraints
- Missing good faith obligations under the Code
- Incomplete disclosure document not picked up before signing
Run this checklist on a real matter
Quillio reviews franchise agreements against the Franchising Code and flags unfair terms. See /practice-areas/commercial-lawyers or start a free trial.
This checklist is a general guide. Franchise agreements are heavily regulated — always recommend independent financial advice to the franchisee.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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