Franchise Agreement

A basic Franchise Agreement outlining the commercial relationship between a franchisor and a potential franchisee.

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Last updated May 15, 2025

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Suitable for Australia

Franchise Agreement

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What is a franchise agreement?

A franchise agreement is a legal contract outlining the rights and obligations between a franchisor and a franchisee for operating a business under an established brand.
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When should you use a franchise agreement?

Use a franchise agreement when granting or acquiring the rights to operate a business using an established system, brand, and support from a franchisor.
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What should be in a franchise agreement?

A franchise agreement should include fees, rights and obligations, operational standards, territory restrictions, use of intellectual property, dispute resolution, and compliance requirements.
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Frequently asked questions

Who is this franchise agreement suitable for?

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What are the main protections for the franchisor?

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What are the key risks for franchisees?

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Does this agreement comply with Australian franchise laws?

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Can this agreement be used for motor vehicle dealerships?

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How can the agreement be changed before signing?

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What ongoing obligations do parties have under this agreement?

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View Sample Franchise Agreement

Franchise Agreement
risk level indicator at Medium level

The Legal Risk Score of a Franchise Agreement Template is Medium

Our legal team have marked this document as medium risk considering:

  • The document allows the franchisor to unilaterally change operational systems and marketing strategies, which could impact the franchisee's ability to plan and control costs effectively.
  • The franchisor retains the right to sell or supply goods or services through alternative channels like the internet, which could potentially compete with the franchisee's business.
  • There are a range of compliance requirements stemming from franchise legislation that both parties must comply with.

Potential franchisees should be aware of these factors and consider whether they have the financial stability and flexibility to adapt to changes imposed by the franchisor.

Meet Our Users

Articles about Franchise Agreement

Legal Documents for Buying or Selling a Franchise
By Zachary Swan|Dec 2, 2025

Legal Documents for Buying or Selling a Franchise

Looking to buy or sell a franchise? Find out what legal documents you will need to ensure a fair and balanced relationship.

Considering Becoming a Franchisee? What to Know
By Dominic Woolrych|Nov 21, 2025

Considering Becoming a Franchisee? What to Know

Dominic Woolrych CEO Dominic is the CEO of Lawpath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the Australian Legal Innovation Index and recently a winner of the LexisNexis 40 Under 40 (APAC). 💡 Key […]

How to Set Up an International Franchise in Australia
By Sheza Shahid|Dec 5, 2025

How to Set Up an International Franchise in Australia

Want to open your own franchise in Australia? This article will outline what steps international franchisors should follow and the legal requirements.

What You Need to Start Franchising
By Youstina Armanyous|Dec 2, 2025

What You Need to Start Franchising

Are you thinking of franchising your business? Follow our A-B-C-D-E acronym to ensure that your franchising journey starts on the right foot.

Complete Guide to Franchisee Laws in Australia: Your Legal Rights and Requirements
By Raja Abbas|Dec 4, 2025

Complete Guide to Franchisee Laws in Australia: Your Legal Rights and Requirements

Are you interested in becoming a franchisee? Read this guide to know what your legal rights are?

What Is a Perpetual Franchise Agreement?
By Daniel Alkurdi|Jul 3, 2020

What Is a Perpetual Franchise Agreement?

A perpetual franchise agreement is an ongoing contract made between you and a franchisee which lays out the rights and responsibilities that each party has.

Becoming A Franchisor: What You Need To Know (2025 Update)
By Dominic Woolrych|Jan 6, 2025

Becoming A Franchisor: What You Need To Know (2025 Update)

Looking to expand your business? Learn what's involved in becoming a franchisor and move your business in the right direction.

Franchise vs Distribution Agreements: Key Differences
By Taeisha Dou|Dec 5, 2025

Franchise vs Distribution Agreements: Key Differences

You should give careful consideration to what type of agreement you are entering into. Is it a franchise agreement or distribution agreement? Find out here.

What Risks Are Involved in Becoming a Franchisee?
By Jenelle Miranda|May 3, 2019

What Risks Are Involved in Becoming a Franchisee?

Thinking of becoming a franchisee? Find out the risks associated with owning a franchise.

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