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Commercial Law / Melbourne

Franchise Lawyers in Melbourne

Advice for franchisees buying into a franchise, and for franchisors building or running one. The franchise agreement is only half the picture: franchising is governed by a mandatory national code that sits over the agreement, and that code was replaced on 1 April 2025. We act on the whole of it, the Code and the contract, for people going in, running, renewing, exiting, or in dispute.

Franchise law in Victoria

Franchising has its own rulebook, and it changed in 2025

Franchising is not just a business you buy or a system you build. It is a relationship governed by a mandatory national code, the Franchising Code of Conduct, which sits over every franchise agreement in the country and cannot be contracted out of. The franchise agreement in front of you is only half the picture.

That code was replaced on 1 April 2025. The rules a franchisee relies on, and the rules a franchisor has to meet, are not the ones that applied a year ago: the cooling-off period doubled, disclosure was restructured, and the penalties went up. A page, or an adviser, working from the old code is working from the wrong rules.

We act for both sides of the franchise relationship, franchisees and franchisors, in Melbourne and across Victoria, on the Code and the contract together.

Commercial law at Pentana Stanton

Buying a franchise

Disclosure, the agreement, the numbers, and the cooling-off window.

Franchise agreements

Drafting and reviewing the document the relationship runs on.

Franchisor set-up

Building a compliant system: disclosure, agreement and register.

The Franchising Code

Compliance with the mandatory code, updated in 2025.

Renewals & exits

Renewal, transfer, termination and restraints after you leave.

Franchise disputes

Good faith, the Code's dispute path, and when it litigates.

Before anything else

The agreement is the franchisor's. The Code is yours.

A franchise agreement is drafted by the franchisor, for the franchisor. Read on its own, it can look as though the franchisee has agreed to almost anything. That is not the whole story, and it is the single most important thing to understand before you sign.

Franchising is governed by the Franchising Code of Conduct, a mandatory industry code made under the Competition and Consumer Act 2010 (Cth). A person must not, in trade or commerce, contravene an applicable industry code (section 51ACB), and the Code cannot be contracted out of. It gives a franchisee protections the agreement cannot remove: a disclosure document before you commit, a period to consider it, a cooling-off right to walk away after signing, and an obligation on both sides to act in good faith.

The franchise agreement can say almost anything. The Code still sits over it, and the Code you cannot sign away.

And the Code changed. On 1 April 2025 a new Franchising Code replaced the previous one. Three changes matter most: the cooling-off period after signing doubled to 14 days; the old Key Facts Sheet was removed and replaced with an information statement; and the penalties for breach rose, to as much as 600 penalty units for key obligations such as disclosure and good faith. If your advice, or the franchisor's paperwork, still runs on the old code, it is out of date.

Disclosure and time

Before you commit, the franchisor must give a disclosure document and a set period to consider it. It is the single best protection a franchisee has, and it only works if you use the time to get it read.

The 14-day cooling-off

After signing, a franchisee generally has 14 days to terminate, a right the 2025 Code doubled from seven. It is short, and it is the last clean exit before the agreement fully binds you.

Good faith, both ways

The Code requires each party to act in good faith towards the other in any matter under the agreement or the Code. It runs both ways, and it is increasingly where franchise disputes are won and lost.

How we work

Read the whole of it, not just the contract

i.

Read the system, not just the agreement

A franchise is a business, a brand, a set of rules, and a relationship, and what you are really buying or granting sits across all of them: the disclosure document, the agreement, the financials, and the Code that governs the lot. We read the whole picture before you commit.

ii.

Find where the risk actually sits

A franchise agreement is written by the franchisor, for the franchisor. The franchisee's protections are largely in the Code, not the contract, and the pressure points are predictable: territory, renewal, transfer, restraint after exit, and what happens if the system changes. We tell you which of those carries real risk for you.

iii.

Act inside the deadlines

Franchising runs on timing: disclosure has to come before you commit, the cooling-off window is short, and a dispute has a set path to follow. Miss a deadline and you lose an option. We make sure the clock is working for you, not against you.

Where the value is

For franchisees and for franchisors

The Code protects franchisees and binds franchisors. We act for both, and the work looks different from each side.

For the franchisee

Before you sign: the disclosure document read properly, the agreement's real risks (territory, renewal, transfer, restraint), the numbers behind the pitch, and the cooling-off clock.

Buying a business

For the franchisor

Building a system that complies: the disclosure document, the agreement, the register, and a franchise relationship run in good faith so it does not become a dispute.

Business law

When it goes wrong

Good-faith failures, misleading pre-sale representations, terminations and restraints. The Code's dispute path first, then the court.

Contract disputes
Speak with us

A plain read before you sign

Initial consultations are confidential and run by senior practitioners. If you are looking at a franchise, the most valuable time to talk is before you commit, while the disclosure and cooling-off protections still mean something.

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The document behind the document

The site lease

Most retail and food franchises come with premises, and the lease behind them is a second agreement that can outlast, or undo, the franchise itself. Who holds the lease, whether it is assigned or granted, what happens to it on transfer or termination, and whether its term matches the franchise term, are questions that decide what your franchise is actually worth.

They are easy to miss when the franchise agreement is taking all the attention. See commercial leases.

When it turns

Franchise disputes

Franchise disputes run a particular path. The Code requires the parties to try to resolve it first, through an internal complaint process and then mediation or conciliation, with arbitration available only if both sides agree. Good faith is often the battleground, and misleading conduct before the sale (section 18 of the Australian Consumer Law) is a frequent second front.

Where it cannot be resolved, it goes to court. See contract disputes and commercial litigation.

What our clients say

Trusted on the matters that mattered most

After speaking to many law firms, I felt that getting legal help was not for me. But my view completely changed after speaking with Special Counsel Peter Wood. He was knowledgeable, generous, kind, and genuinely caring. Peter listened with compassion and made me feel supported during a difficult time.
Tasnim Mehjabin, Google review
Highly professional, compassionate staff with a high level of knowledge and competence. Reliable, reassuring and there when you need them. Highly recommend.
Gaynor Martyn, Google review
From the moment I contacted Pentana Stanton Lawyers, I was under significant stress and needed clarity about my case. Their prompt and professional response stood out immediately, especially compared to other firms I had reached out to.
Mohannad Ahmed, Google review
Frequently asked

Franchise questions, current to the 2025 Code

It is a mandatory national code that governs the relationship between franchisors and franchisees, made under the Competition and Consumer Act 2010 (Cth). It requires disclosure before you sign, a cooling-off period after, and good faith on both sides, and it cannot be contracted out of. A new Code replaced the previous one on 1 April 2025, so the current rules are not the ones that applied a year ago.
Get the disclosure document, and use the time the Code gives you to have it and the agreement read properly. Before a franchisee signs, the franchisor must provide a disclosure document and allow a consideration period. That window is the best chance to find the risks in the agreement, check the numbers behind the franchisor's pitch, and decide with advice rather than under pressure.
14 days. Under the Franchising Code a franchisee can generally terminate a new franchise agreement within 14 days of entering into it. The 2025 Code doubled this from the previous seven days. It is a short window and the last clean exit before the agreement fully binds you, so if you are having second thoughts after signing, get advice immediately, not next week.
A franchisor must give a prospective franchisee a disclosure document setting out the key information about the franchise and the franchisor, along with the Code and the proposed agreement, before the franchisee signs or pays. The 2025 Code also replaced the old Key Facts Sheet with an information statement. Disclosure is a legal obligation, not a courtesy, and getting it wrong carries civil penalties.
The Code requires each party to act towards the other in good faith in any matter arising under the agreement or the Code. It applies to franchisor and franchisee alike, and it runs through the whole relationship, from negotiation to renewal to exit. It does not force a party to act against its own interests, but it does constrain conduct that is arbitrary, dishonest, or for an improper purpose, and it is increasingly where disputes are decided.
It depends on when and why. Within the 14-day cooling-off period after signing, a franchisee can generally terminate. After that, ending a franchise turns on the agreement's terms and the Code, and wrongful termination carries the same risk it does in any contract: end it without the right and you may be the one in breach. Transfer, non-renewal and restraints after exit each have their own rules. Take advice before you act.
The Code sets a path. The parties are expected to try to resolve it themselves first, then through mediation or conciliation, with arbitration available only if both agree. Many disputes turn on good faith, or on what was represented before the sale, which can also be misleading conduct under the Australian Consumer Law. Where the Code's process does not resolve it, it goes to court. Handling it well early usually decides the outcome.
Yes, and more of them. The Code is largely a set of obligations on the franchisor: to disclose, to act in good faith, to follow the dispute procedure, and to list on the public Franchise Disclosure Register. The 2025 Code increased the penalties for getting these wrong. For a franchisor, compliance is not paperwork, it is what keeps a growing system out of dispute and out of the regulator's attention.
Before you sign, on either side. For a franchisee, that means during the disclosure period, while you still have the cooling-off protection and before you are committed. For a franchisor, it means before the system is built, so the disclosure document and agreement are compliant from the start. Advice after the fact is always more expensive than advice before it.

Last reviewed July 2026. References to the Franchising Code of Conduct are to the current Code that commenced on 1 April 2025, a mandatory industry code under the Competition and Consumer Act 2010 (Cth). This page is general information, not legal advice.

Speak with our commercial team

Before you sign, on either side.

Whether you are buying into a franchise or building one, the most valuable advice comes before you commit, while the Code's protections still mean something. Arrange a consultation and we will give you a plain read on the Code and the contract together.