Your obligations under the new franchise laws

Ensuring Corporate Documents' Enforceability - What to Know



Franchising laws have changed again, and if you’re a franchise business owner it’s important you’re up to the date with the latest requirements.

The government has introduced the online Franchise Disclosure Register, which is a database of franchisors’ disclosed information, which can be accessed for free by any member of the public.

This is great if you’re potentially looking at buying a franchise. If you are already a franchisor, you need to be aware of the new disclosure obligations required by the register.

Franchisors must provide, as a minimum, their name, trading name, ABN, office address, phone number, contact email and ANZSIC division and subdivision codes for the industry in which the franchise operates.

Franchisors can now upload information to the register – which can be found at 

Uploading information will require a franchisor or a nominated delegate/contact such as a solicitor, to create a franchise profile using their MyGov ID.

The deadline for uploading information is November 14, 2022.  After that date, for any new franchise agreement that a franchisor proposes to enter, the information must be provided to the register at least 14 days before entering into the agreement.

Each year, franchisors will also be required to confirm the currency of information on the register and failure to do so could attract a penalty of up to $133,200.

If you’re looking to become a business owner, a franchise could be an attractive option and there are several pros and cons that go with the franchise structure.

Firstly, the pros:

  1. Brand Recognition

One of the biggest benefits of franchising is that the parent company will already have established a brand name and reputation. These businesses have likely been in the market for some time and will have a solid customer base and following. This means that you will have an easier time attracting customers to your business.

  1. Supply Chain

Another benefit of franchising is that you will get to work with a well-established supply chain. The parent company will likely have established suppliers that have been vetted and approved. This means that you will avoid having to set up your own supply chain from scratch.

  1. Infrastructure

If you buy a franchise, it is likely that you will also get to use the parent company’s infrastructure. This includes things like training and marketing support services. For example, the parent business will likely provide you with a training blueprint that they use to train their own employees. This should reduce the amount of time you spend training your staff since you already have a program ready.

And secondly, the cons:

  1. Requirements

Franchising is not a get-rich-quick scheme, to put it bluntly. You will have to have a lot of capital to buy a franchise, and you will also have to have a lot of patience. You will need to be prepared to wait a long time before your business will start to make money.

  1. Restrictions

When you buy a franchise, you will be told exactly how to run your business. You will not get to use your own ideas and creativity when it comes to running your business. What you learn from the parent company must be applied to your store without fail. If you do not stick to the rules, the parent company can take action against you, which could cancel your franchise.

  1. Loss of Liberty

Since you are essentially working with a business, you will not have all the freedom you want. For example, if you are flipping burgers and decide you want to mix in some cheese, you might get in trouble for trying to come up with your own recipe for burgers. In other words, you aren’t your own boss, and that, for many people, is a big con.

If you’ve got questions about owning a franchise, or the requirements for the new disclosure register, get in touch with our office today. The commercial law experts at GLG Legal are here to help you. Phone: (07) 3161 9555 or email: 











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