Franchise renewal checklist (AU)
Renewal is where many franchise relationships break down — fit-out obligations, rent changes, and fee increases all collide at the end of term. This checklist covers the 12 steps to manage renewal under the 2024 Code.
This is a 12-step checklist for an Australian franchise renewal under the Franchising Code of Conduct 2024. It covers franchisor notice, disclosure document currency, end-of-term arrangements, good faith obligations, and the 14-day cooling off period that applies on renewal. Use it 12 months before the end of term.
The checklist
Confirm end-of-term date and renewal rights
Confirm the end-of-term date and whether the agreement grants an option to renew. Diarise 12 months ahead.
Franchisor notice of end-of-term arrangements
Franchisor must give notice of end-of-term arrangements at least 6 months before end (or 1 month for terms under 12 months).
Review the disclosure document
Franchisor must provide an updated disclosure document at least 14 days before renewal or extension.
Key Facts Sheet
Franchisor must also provide the Key Facts Sheet with the disclosure document.
Independent advice certificates
Franchisee must provide signed legal, business, and accounting advice statements (or waivers) before renewal.
Cooling off period — 14 days on renewal
The 14-day cooling off period now applies on renewal and extension — not just new grants.
Good faith obligations
Both parties must act in good faith in the renewal negotiation and approach to end-of-term.
Lease and premises
Coordinate the renewal with any head lease renewal. Confirm assignment/step-in rights at end of term.
Fit-out and refurbishment
Review refurbishment obligations triggered by renewal. Test reasonableness and timing under good faith.
Restraint of trade
Review restraints on non-renewal — geographic, duration, activity. Test enforceability under state-based restraint law.
Fees and royalties on renewal
Check whether franchisor is imposing new or increased fees and whether this complies with the Code and good faith.
Dispute process and ADR
If renewal discussions break down, consider the Code's mandatory ADR pathway via the Australian Small Business and Family Enterprise Ombudsman.
When this checklist applies
Use this checklist 12 months before end of term — both sides benefit from early clarity. The statutory notices and disclosure documents must be on time, so diarise each milestone.
Common pitfalls
- Franchisor missing the 6-month end-of-term notice
- Out-of-date disclosure document issued at renewal
- No cooling off on renewal — now required under the 2024 Code
- Refurbishment obligations sprung on renewal without reasonable notice
- Restraints assumed enforceable without state-based review
Run this checklist on a real matter
Quillio runs franchise renewal audits against the 2024 Code, drafts updated disclosure documents, and models end-of-term scenarios. See /practice-areas/commercial-lawyers or start a free trial.
The Franchising Code was reformed in 2024. Use this checklist with current ACCC guidance on the new Code.
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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