Franchise Agreement in Australia: Template and Key Clauses (2026)

A franchise agreement in Australia lets a franchisor grant a franchisee the right to run a business under the franchisor's brand and system, in return for fees, for a set term and territory. What makes Australia different from a plain commercial contract is that franchising is regulated by a mandatory industry code. You cannot just sign the contract. You have to follow a disclosure and cooling off process first, and the agreement itself has to fit around that process. This is general information, not legal advice. Franchising is heavily regulated in Australia, so take advice before you issue or sign an agreement. ## The Franchising Code of Conduct comes first Franchising in Australia is governed by the Franchising Code of Conduct, a mandatory code made under the Competition and Consumer Act 2010 (Cth) and enforced by the Australian Competition and Consumer Commission (ACCC). The Code sets out what a franchisor must do before and during the relationship. In broad terms, before a franchisee signs or pays, the franchisor must give a disclosure document, a copy of the Code, a key facts sheet, and the proposed franchise agreement, and must allow a minimum period for the franchisee to consider them. There is also a cooling off period after signing during which the franchisee can withdraw. The Code requires good faith dealing between the parties and sets rules for dispute resolution, marketing funds and end of term arrangements. <!-- [VERIFY] current Franchising Code instrument, minimum disclosure period in days, cooling off period in days, and any 2025 remake details before publishing exact numbers --> ## Key clauses, clause by clause 1. Parties and grant. Name the franchisor and franchisee and grant the right to operate the franchised business under the system and marks. 2. Term and renewal. Set the term and any renewal rights, and align end of term arrangements with the Code, including notice of whether renewal will be offered. 3. Territory. Define the territory and whether it is exclusive, and whether the franchisor can operate or sell online into it. 4. Fees. Set the initial franchise fee, ongoing royalties, and marketing or advertising fund contributions, and explain how each is calculated and spent. 5. The system and manual. Give the franchisee the right and duty to follow the operations manual, and allow the franchisor to update it. 6. Intellectual property. Licence the trade marks, branding and know how for use in the franchised business only, and protect confidential information. 7. Training and support. Set out initial training and ongoing support from the franchisor. 8. Standards and supply. Set quality standards, approved suppliers, and any requirement to buy stock from or through the franchisor, keeping competition law limits in mind. 9. Marketing fund. If there is a common marketing fund, describe how contributions are collected, held and reported, as the Code requires transparency. 10. Obligations and restraint. The franchisee's duties while trading and any restraint of trade after the franchise ends, drafted to a reasonable scope so it can be enforced. 11. Assignment and transfer. Set the conditions for the franchisee to sell or transfer the franchise, including franchisor consent. 12. Termination and end of term. State the grounds for termination and the end of term steps, consistent with the Code, including what happens to stock, fit out and the marks. 13. Dispute resolution and governing law. Provide for the dispute process the Code contemplates and choose an Australian governing law. ## Disclosure and good faith The disclosure document is the heart of franchise compliance. It must give the franchisee a fair picture of the franchisor, the costs, the obligations, the history of the franchise, and the people behind it. Getting disclosure wrong, or rushing a franchisee past the consideration and cooling off periods, is a common and serious failure. The Code also imposes a duty of good faith, which applies across negotiation, the term, and termination. ## Common mistakes to avoid - Signing before the full disclosure and consideration process is complete.

• An incomplete or out of date disclosure document.
• Ignoring the cooling off period or pressuring the franchisee to waive it.
• A restraint of trade drawn so wide that a court will not enforce it.
• A marketing fund with no clear rules on how money is collected, held and reported.
• Vague end of term provisions that lead to disputes over stock, fit out and goodwill.
• Treating good faith as optional when the Code makes it a duty. ## Keeping a franchise network governed A franchisor is not managing one contract. It is managing a network of near identical agreements with different start dates, renewal dates, territories and fee positions, each tied to a disclosure obligation that repeats every year. The ongoing work is knowing which franchisee is due for renewal, whose disclosure needs updating, and where obligations are slipping, and that oversight is hard to keep in spreadsheets and email. Adira is an AI workspace, built on Claude, where you can draft a franchise agreement from a tuned template, review it for risk such as an overbroad restraint, sign and stamp it in flow, and track terms, renewals and disclosure dates across the whole network in one place, with public per seat pricing and a 7 day trial. It is India first and global capable, and a command centre view of your network is on its roadmap. The essential point stands with or without a tool: follow the Franchising Code of Conduct, disclose fully and on time, and draft restraints and end of term terms that will actually hold.