Buying a Franchise in Australia: Check Disclosure Timing

Before buying a franchise in Australia, build a document timetable rather than working backwards from the seller’s preferred signing date. Mandatory disclosure gives you time to examine the proposed relationship, but receiving a bundle of documents is not the same as understanding it. A clear record of what arrived, when it arrived and what remains unresolved helps you make a considered decision about joining a franchising community.

Understand the two stages of disclosure

Australia specifically regulates franchising through the federal Franchising Code of Conduct, a mandatory code under the Competition and Consumer Act 2010. The current Code commenced on 1 April 2025, with transitional arrangements affecting how particular provisions apply. The Australian Competition and Consumer Commission (ACCC) oversees compliance. The Australian Consumer Law also applies.

The first document to expect is the information statement. A franchisor must provide it within seven days after you express interest in acquiring a franchise, and before other disclosure-related documents. It explains the nature of franchising and highlights checks to undertake before committing. It is not a brand-specific assessment or an endorsement of the opportunity.

The next stage is the substantive disclosure package. This includes:

• The franchise agreement you are being asked to enter into.
• The franchisor’s disclosure document.
• A copy of the Franchising Code of Conduct.

Generally, these must be provided at least 14 days before you enter into the agreement or make a non-refundable payment connected with the proposed franchise. Exceptions can apply in particular circumstances, so ask your solicitor to confirm the requirements for your transaction rather than relying on a salesperson’s calculation.

Create a receipt and version register

Set up a simple spreadsheet with a row for each document. Record its title, date, version, arrival date and any missing schedules or attachments. Keep the original emails and download documents from signing portals so that you retain your own copies.

Do not assume that the first email containing a brochure starts the statutory review period. Equally, a folder labelled ‘complete disclosure’ may still lack the agreement’s schedules or contain details for a different outlet.

Check that the documents consistently identify:

• The proposed franchisee and franchisor.
• The business or outlet you intend to acquire.
• The agreement’s term and proposed commencement date.
• The fees and obligations relevant to your offer.
• Every schedule and attachment referred to in the agreement.

Send a written list of omissions promptly. Ask your solicitor to confirm whether the required package has been supplied and the earliest lawful commitment date.

If revised documents arrive, preserve both versions and request a marked-up comparison. Do not assume every amendment restarts the 14-day period, or that no amendment does. The treatment can depend on the nature of the change. Your adviser should assess the actual revisions before you accept a signing deadline.

Use the review period to resolve questions

The minimum disclosure period is a legal safeguard, not a recommended deadline for finishing due diligence. A complicated purchase may require substantially longer to assess.

Allocate the documents immediately: your solicitor reviews legal obligations and disclosure compliance, while your accountant examines the financial implications. Give both advisers the same version of the package and tell them about any proposed payment or signing date.

Maintain a separate questions log. For each issue, record the document reference, your question, the franchisor’s written answer and whether a contractual amendment is needed. This prevents an unanswered point from disappearing among emails.

Distinguish between an explanation and a change to the deal. If the franchisor says a clause will not apply to you, ask your solicitor whether that assurance needs to be reflected in the agreement. A friendly explanation does not necessarily alter the document you sign.

Before entering the agreement, you will also need to provide a statement about whether you obtained independent advice. Treat this as an accurate record, not a substitute for obtaining that advice.

Control payments and signing deadlines

Before paying a reservation fee or deposit, request written terms explaining its purpose, who receives it and when it is refundable. Have your solicitor assess those terms: the label ‘deposit’ alone does not establish whether a payment is refundable or whether it can lawfully be requested at that stage.

Keep the pre-signing disclosure period separate from any cooling-off rights after signing. They serve different purposes; a possible right to withdraw later is not a reason to sign before completing your checks.

Practical takeaway: keep a dated, version-controlled disclosure file, obtain written answers and have your solicitor confirm the timing before you sign or pay. Let completed checks determine your commitment date—not sales pressure.