Assignment and novation are two methods of transferring contractual rights or obligations from one party to another. While they might seem similar and even interchangeable on the surface, they actually have very different uses, so it is important to have a good understanding of what you want to transfer and how you can do it.

In this article I take a look at some of the recent commentary around the outlook for franchising in 2026, as well as recapping the regulatory changes in 2025 (particularly the changes that came into effect on 1 November 2025).

2025 was a busy year in franchising with 2 tranches of Franchising Code changes coming into effect, requiring franchise disclosure documents to be updated twice last year in some cases.

Thankfully, 2026 should see more stability on the regulatory front.

An Assignment Agreement is a legal document which can be used by one party (the assignor) to assign rights or interests previously belonging to the assignor to another party (the assignee).

Arbitration is an alternative form of dispute resolution (‘ADR’) where parties with a disagreement present their case to a neutral third party known as an arbitrator, who then determines an outcome to resolve a dispute.

A decision made by an arbitrator is legally binding on all parties and enforceable in Court, unless all parties agree that the arbitrator’s decision will not be legally binding .

Since 2010, all of Australia's states and territories have been governed by Commercial Arbitration Acts, a scheme of legislation which have created a uniform framework for commercial arbitration in Australia. This ensures consistency in the processes and outcomes of arbitrations across the country.  

Arbitration between countries is also regulated in Australia by the International Arbitration Act 1974 (Cth) .

Arbitration is a popular method for resolving commercial disputes, as it is efficient, impartial and enforceable . There are many professional arbitrators in Australia, and its arbitration industry is independent and sophisticated .

The Australian Franchise Outlook Report 2026 indicates that support in understanding legal documents is one of the most important factors in helping someone feel more confident about becoming a franchisee.

When you buy a franchise, you essentially buy the right to operate a business that is the same as the other businesses in the franchise network.

What is Franchising?

In order for all of the franchised businesses to essentially be the same, the product or service that is sold by each franchise must be consistent.

To achieve consistency, a franchisor may restrict where you purchase the supplies required to operate your business.

This can sometimes mean that the cost of your supplies (or the cost of goods sold) is higher than it otherwise might be if you were operating an independent business.

Starting Your Own Business vs Buying A Franchise

Last week while I was busy ensuring that our franchisor clients had updated their profile on the Franchise Disclosure Register, the Federal Government released its consultation paper on a licensing regime for the franchising sector.

As foreshadowed in its response to the 2023 Review of the Franchising Code of Conduct (the Code), the Government has proposed amendments to the current termination provisions of the Code.

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.

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.