Franchising allows one business to operate under the name of another business’ established brand and sell a prescribed product or service. Franchising can seem like an easy way of starting or expanding your business, but it’s not something you should rush into without the proper knowledge. Whether you are buying a franchise or franchising your own business, it requires a significant investment of your time and money.

Buying a new franchise

Buying a franchise gives you the right to run a business and sell a prescribed product or service. Before you buy a franchise, you should consider the same issues as when purchasing any other business in addition to the specific issues of franchising.

Consider whether this is the right opportunity for you and if you have the right skills and knowledge to run this type of business. Remember this is a significant financial investment, so as a franchisee, you should carefully consider your options.

It’s important to understand that when you buy a franchise and sign the agreement, you are agreeing to run the business according to the requirements established in the contract. You are also bound by the Franchising Code of Conduct. Consider consulting a business adviser, accountant or solicitor for advice.


  • Entering into a franchise agreement
    The franchise agreement is a legally binding document spelling out the rights and responsibilities of both the franchisor and franchisee.
  • Resolving franchising disputes
    If a dispute occurs between you (the franchisee) and the franchisor and it cannot be resolved, the Office of the Mediation Adviser (OMA) may be able to assist you

Read more about Franchising from the Australian Competition & Consumer Commission (ACCC)