3 Reasons It’s Better to Consult a Franchising Lawyer First

Ensuring Corporate Documents' Enforceability - What to Know


Buying a franchise is an excellent way to expand your experience as a business owner, but understanding all the legalese found in franchise agreements can make the process intimidating even for seasoned entrepreneurs. While franchising is a safer way to start a business, the process is often complicated since the documentation involved is not easily understood. 

Keep in mind that the Franchising Code of Conduct is responsible for setting the regulatory standards in Australia’s franchising industry, so keeping up with the laws involved requires the aid of a lawyer who can help make sense of the legalities in your franchise agreements. So before you jump on the opportunity to set up a franchise, here are some reasons you should consult a franchise lawyer first. 

Why It’s Better to Seek Advice from a Franchise Lawyer

Benefit #1: Become More Educated When Reviewing Franchise Agreements 

Understanding franchise agreements can be tricky, even if most are written in “plain English” since all the legal obligations can make it daunting. Working with a franchise lawyer can help break down all the relevant and important points that are hard to understand, so you can have confidence in your decisions regarding the contents of the agreement. 

Agreements often have unique elements that should also meet your state’s regulations, from subleases, security agreements, construction, development agreements, and more, so having a lawyer will come in handy in ensuring you understand your obligations. 

Benefit #2: Ensure the Contract is Fair and Fulfills Your Expectations 

Most franchising contracts often favour the franchisor, so it’s essential to consult your lawyer to ensure that the contents match your needs. Your lawyer can also represent you by negotiating the terms, so you can sign a contract that aligns with your goals and protects you from future complications with the franchisor. 

Benefit #3: Know the Renewal Terms and Cross-Default Clause

Not all franchisors offer a renewal, while some charge a fee if you want to continue your contract. You can pursue a franchise that reflects your short and long-term goals with the right renewal terms with a lawyer by your side. 

Additionally, a lawyer can help you understand a cross-default clause, allowing franchisors to default on all your franchises if one of your businesses fails. Other than understanding what it entails, a lawyer can also help you challenge the cross-default clause. 

The Bottom Line: The Importance of Working with a Franchise Lawyer 

Buying a franchise involves a long, droning documentation process rife with legal terms that may be tricky to understand, even for established business moguls. Consulting a lawyer who specialises in franchising a business can help you make well-informed decisions moving forward, so you can make sense of everything before you sign the dotted line. 

Now that you know the benefits of working with a franchise lawyer, the best way to find the right professional to help you with this specific situation is to consider qualities that meet your needs. Someone who can review the franchise documents and provide solid, easy-to-understand advice can already help put you in a better position, especially in the negotiation phase. 

How Can We Help?

If you are looking for commercial contract lawyers in Brisbane, contact our team at GLG Legal today! We can help you navigate the legal complexities of real estate investing for your business, so get in touch with us today and see what we can do to simplify the process.

You May Also Like…


Brisbane, Head Office

Level 8, 193 North Quay, Brisbane QLD 4000

P: 07 3161 9555

E: info@glglegal.com.au

Redland Bay

133 Broadwater Terrace, Redland Bay QLD 4165

P: 07 3206 8700

E: info@glglegal.com.au


Brookwater Office Park,

Level 1, Building 9,

22 Magnolia Drive, Brookwater QLD 4300

P: (07) 3288 3511

E: info@glglegal.com.au