Franchising has long been considered a highly effective strategy for business growth, particularly in Australia. With over 1,100 franchisors and 70,000 franchisees operating across the country, this business model has become a cornerstone of the Australian economy, contributing more than $135 billion annually and employing around 520,000 people.

For many entrepreneurs, franchising offers a seemingly straightforward path to business expansion, leveraging an established brand and proven operational models to penetrate new markets quickly.

As part of the Australian Federal Government's Competition Review, Treasury is considering how businesses can protect confidential information or trade secrets without the use of non-disclosure or confidentiality clauses, such as through the use of patents.

In this article we examine the legal definition of trade secrets and how trade secrets are currently protected.

This post was updated on 23 May 2025

The Franchising Code of Conduct (the Franchising Code) provides that certain documents must be given to a franchisee before they enter into a franchise agreement.

Updated 17 May 2025

Franchising can be a rewarding experience that provides benefits for both the franchisor and the franchisee. But what if either the franchisor or the franchisee wants to end the relationship before the franchise agreement expires?

Under the terms of a franchise agreement, a franchisee is given the right to operate the franchise business for a period of time. When the time period expires, the franchise agreement "expires". [What is a Franchise Agreement?]

If the franchise agreement ends before it expires, this is generally referred to as "termination".

Franchise agreement termination is a complex area, which has increased in complexity since the introduction of the new Franchising Code in April 2025.

A franchisor can terminate a franchise agreement early (that is, before the franchise agreement expires), if the franchisor follows the procedures set out in the franchise agreement and the applicable Franchising Code of Conduct (the Franchising Code). [What is the Franchising Code of Conduct?]

There are less options for franchisees to terminate a franchise agreement early because franchise agreements do not generally allow a franchisee to simply terminate the franchise agreement. If a franchise agreement contains provisions allowing a franchisee to terminate the franchise agreement, a franchisee can terminate a franchise agreement early if the franchisee follows the provisions set out in the franchise agreement.

There are also limited circumstances where a franchisor or franchisee can terminate a franchise agreement at 'common law'. We have not dealt with these circumstances in this article.

Termination Under the Franchising Code of Conduct
Termination Clauses in Franchise Agreements
Legal Procedures for Terminating A Franchise Agreement

On 7 May 2024, the Minister for Small Business, the Hon Julie Collins MP, released the Australian Government's response to the Independent Review of the Franchising Code of Conduct. In this article we consider the recommendations of the Independent Review together with the Government's response.

What is A Franchise Agreement?

One of the disadvantages of buying a franchise is the lack of independence or autonomy in operating the franchise, and the restrictions on decision-making [The advantages and disadvantages of franchising]. How much autonomy a franchisee has in operating their franchise business, will depend on the franchisor, the business operation that the franchisee is wanting to do differently and the reasons why the franchisee is wanting to depart from the franchise offering. While there is a case to be made for some franchisee autonomy, this needs to be balanced with brand consistency . 

What is Franchise Autonomy?
Can Franchisees Adapt Operational Procedures?
Are Franchisees Able to Introduce New Products or Services?
What Level of Autonomy do Franchisees Have in Local Marketing?
Can Franchisees Negotiate with Suppliers Independently?
Challenges of Franchisee Autonomy
Strategies for Balancing Autonomy and Consistency
The Future of Franchisee Autonomy 

Explore the importance of social media policy for franchisees and how it can benefit their businesses.

Restraint of trade clauses are common in franchise agreements and are designed to protect the franchisor's legitimate business interests.

It is important for franchisees to carefully review and understand the restraint of trade clauses in their franchise agreements to ensure compliance and avoid potential legal issues.