Buying a Franchise in Australia: Choose Independent Advisers

Before buying a franchise in Australia, decide who will help you assess it — and exactly what you need them to check. A lawyer, accountant and business adviser bring different skills. Their value depends on independence, relevant experience and clear instructions. Within the franchising community, a recommendation can be a useful introduction, but it should never replace your own checks on an adviser’s suitability.

Choose experience and independence

Look for advisers who regularly work with prospective franchisees, rather than simply handling general business transactions. Ask about recent work involving businesses with a similar operating model: a mobile service franchise raises different practical questions from a staffed retail outlet.

Useful screening questions include:

• How often do you advise buyers of Australian franchises?
• Have you worked for this franchisor, its related companies or the seller?
• Do you receive referral payments or have another commercial relationship with anyone involved?
• Who will actually review my documents, and who will explain the findings?
• What falls outside your proposed scope?

A franchisor’s referral is not automatically unsuitable. However, ask the adviser to explain any relationship and whether it creates a conflict. You need someone who can recommend delaying, negotiating or walking away without a competing interest in completing the sale.

Check professional qualifications and relevant practising credentials. Request a written engagement letter setting out the client, scope, fees, exclusions and expected timetable. Confirm whether the quote includes follow-up questions and review of revised documents, not just an initial report.

Give each adviser a distinct job

Avoid asking three people to “check the franchise” without allocating responsibilities. That can produce overlapping comments while leaving important gaps.

Your lawyer should explain the obligations you would accept, identify material legal risks and advise on changes worth requesting. Their brief should cover the proposed franchisee entity and any related documents you are being asked to sign. Ask for a plain-English explanation of what could prevent you from operating as intended or expose you to liabilities you have not anticipated.

Your accountant should assess the financial implications of the proposed transaction and the assumptions behind your business plan. Ask them to distinguish verified information from estimates, identify missing evidence and explain the tax implications of the proposed ownership structure. An accountant’s review is not a guarantee that the business will succeed.

Your business adviser can assess commercial suitability: local demand, competitive conditions, your management capabilities and whether the operating model fits your objectives. Clarify their qualifications and experience, because the title alone does not tell you what expertise they offer.

Ask all three to flag issues outside their remit. For example, a contractual obligation identified by the lawyer may need to be priced by the accountant before you can judge its significance.

Require current Australian legal knowledge

Australia specifically regulates franchising through the mandatory Franchising Code of Conduct, enforced by the Australian Competition and Consumer Commission. A new Code commenced on 1 April 2025, with some requirements applying from 1 November 2025. Your lawyer should establish which provisions and transitional arrangements apply to your proposed transaction.

The Code governs matters including pre-contract disclosure and good faith. Good-faith obligations extend to parties proposing to enter a franchise agreement. Australian Consumer Law also applies, including prohibitions on misleading or deceptive conduct. Employment, tax and other relevant laws still matter: joining a franchise does not replace your responsibilities as a business owner.

Ask your lawyer to explain the disclosure and waiting-period requirements relevant to your purchase before you sign or make a non-refundable payment. Do not treat a statutory minimum review period as a target for completing complex advice.

The Australian Government’s Franchise Disclosure Register can help you compare published information. It does not replace independent assessment of the particular agreement and business you are considering.

Bring the findings together before committing

Give your advisers the same current documents, together with relevant emails, written promises and your proposed timetable. Keep a dated document list so nobody reviews an outdated agreement.

Request written findings that distinguish between:

• issues that must be resolved before proceeding;
• risks you could accept only after understanding their consequences;
• points requiring further evidence or specialist advice.

Arrange a joint discussion where legal and financial issues overlap. Then maintain one action list recording the question, who will resolve it and the evidence needed to close it. Send revised terms back to the relevant adviser rather than assuming a change solves the problem.

Practical takeaway: appoint independent advisers early, give each a defined brief and require a coordinated final review. Buy only when you understand both the unresolved risks and the obligations you are accepting.