At Franchise Legal Partners, we conduct end-to-end reviews of your franchise system’s compliance. Our process includes:
1. Legal Document Audit
We review your:
- Franchise Agreement.
- Disclosure Document.
- Information Statement usage.
- Licence to Occupy, General Security Deeds, Deed of Guarantees.
- Marketing fund clauses and templates.
- Cooling-off procedures.
- Termination and dispute clauses.
We assess whether your templates comply with:
- The Franchising Code (2024 amendments included).
- Australian Consumer Law (ACL).
Unfair contract term protections.
2. Disclosure Document Review
We check that your Disclosure Document:
- Is updated within 4 months of EOFY.
- Includes all mandatory financial, legal, and contact information.
- Reflects current franchise fees and obligations.
- Lists existing franchisees and past exits accurately.
We’ll also make sure you’re using version control systems so outdated documents aren’t mistakenly issued.
3. Compliance Systems Check
We examine your internal procedures for:
- Issuing franchise packs.
- Recording dates of disclosure and signing.
- Handling cooling-off rights.
- Logging franchisee complaints.
- Maintaining marketing fund records.
- Updating franchisee contact details.
- Providing annual disclosure updates to all franchisees.
We’ll recommend tools, checklists, and automations to keep you compliant — efficiently.
4. Franchisee Communications
We review your methods for:
- Delivering notices.
- Obtaining representation questionnaires.
- Issuing notices of termination or renewal.
- Handling resales and new franchisee onboarding.
Poor communication = high risk of disputes. We help standardise processes for consistency and protection.
5. Training & Cultural Review
Are your staff aware of:
- Good faith obligations?
- What they can and cannot say during recruitment?
- What constitutes coercion or misleading conduct?
We offer training and written protocols to embed compliance into your franchise culture — not just your contracts.
How Often Should I Review My Compliance?
We recommend franchisors conduct a formal compliance review at least once per year, preferably:
- Between July and October each year (after finalising the Disclosure Document).
- Immediately after any legislative changes to the Code.
- Following franchisee disputes, complaints, or litigation.
- When expanding into new states or territories, or appointing Master Franchisees.
Franchising law is dynamic. Regular reviews ensure your systems evolve — not stagnate.
Common Non-Compliance Risks We See
- Outdated Disclosure Documents.
- Failure to issue Information Statements at the correct time.
- Poor recordkeeping around disclosure and signing dates.
- Franchise Agreements containing unfair contract terms.
- Lack of documented systems to manage Code timeframes.
- Improper handling of terminations or renewals.
- Failure to give cooling-off periods.
- Marketing fund misuse or non-reporting.
If any of these sound familiar, it’s time to act. The ACCC has increased its enforcement activity — don’t wait until it’s too late.
How We Help Franchisors Stay Compliant
- Full compliance audits of documents and procedures.
- Updated Disclosure Documents and Franchise Agreements.
- Annual Disclosure update support (fixed fee).
- Tools for tracking compliance events and deadlines.
- Training for internal teams on Code compliance and good faith.
- Risk reviews for franchise recruitment practices.
- Compliance guides, checklists, and recordkeeping templates.
We also act as external compliance counsel for national franchise networks.
Frequently Asked Questions
How often does the Franchising Code change?
Amendments are made regularly — including significant changes in 2021 and 2024 and proposed unfair contract term laws that came into effect in late 2023. We stay on top of updates so your documents always reflect the current law.
What happens if my Disclosure Document is not updated on time?
If not updated within 4 months of EOFY, you cannot legally recruit new franchisees. You may also face:
- Fines.
- ACCC enforcement.
- Franchisees terminating based on defective disclosure.
What is the Key Facts Sheet and do I need to include it?
The Key Facts Sheet was a mandatory summary that had to be annexed to your Disclosure Document. It outlined key terms like fees, tenure, and site arrangements in plain English. It is no longer required under the current Franchising Code of Conduct.
Do I need to give the Information Statement to all leads?
You must provide the Information Statement:
- At the earliest serious stage of negotiations.
- Before providing the Disclosure Document.
Failure to do so breaches the Code.
Can I use the same Franchise Agreement for every franchisee?
Yes — but each Agreement should:
- Be tailored with the correct names, dates, and fees.
- Be reviewed periodically for changes in law.
- Be consistent with your Disclosure Document.
What are unfair contract terms, and do they apply to franchise agreements?
Yes. Recent amendments to the Australian Consumer Law prohibit unfair terms in standard-form contracts — including franchise agreements. Examples include:
- One-sided variation rights.
- Unfair penalty clauses.
- Excessive indemnities.
We audit and amend these to ensure enforceability.
How do I show that I acted in good faith?
The Code requires good faith in all dealings. You can demonstrate this by:
- Giving franchisees time to consider documents.
- Responding reasonably to complaints or requests.
- Not exploiting legal technicalities.
- Offering transparency and fairness in negotiations.
Let’s Review Your Compliance — Before the Regulator Does
Whether you need a full system audit or just want peace of mind before recruitment season, we’re here to help.
