The franchise disclosure document arrives two weeks before you can sign anything. That gap exists for a reason, and what you do with those fourteen days can shape the next five to ten years of your working life. If you miss something important in the franchise agreement, or sign before the mandatory consideration period ends, you may have limited options to walk away without significant cost.
Queensland buyers are protected by a national Franchising Code of Conduct that sets out exactly what a franchisor must disclose, when it must be disclosed and what rights you have to reconsider. A new Code commenced on 1 April 2025, with remaining rules becoming mandatory from 1 November 2025, according to the ACCC. Understanding what the Code requires, and where agreements can still vary significantly, is what turns the fourteen-day window into a useful one.
Our Springfield team helps clients across Greater Springfield and Ipswich with reviewing franchise agreements and advising on what the Code means in practice.
Here is what the Franchising Code of Conduct requires, and what to look for in a franchise agreement before you sign.
Key takeaways
- A franchisor must give you the documents at least 14 days before you sign.
- A 14-day cooling-off period applies after you sign a new franchise agreement.
- The franchisor generally cannot change the agreement unilaterally after signing.
This article is general information only and is not legal advice. Every situation is different, and you should speak with a solicitor about your own circumstances.
What does the Franchising Code of Conduct require in Queensland?
The Franchising Code of Conduct is Commonwealth law, and it applies in the same way in Queensland as it does everywhere else in Australia. Under the Code, a franchisor must give a prospective franchisee an information statement within seven days of the franchisee showing interest, before any other document is provided, according to the ACCC. After that, the franchisor must give the franchise agreement in final form, the disclosure document, a copy of the Code, and where relevant any leasing information and other agreements the franchisee must sign, at least fourteen days before the agreement is entered into. No agreement can be signed during that period, and the same fourteen-day rule applies to transfers of an existing agreement.
The disclosure document must give, for each recurring or one-off payment, the amount or formula, who is paid, when it is due and whether it is refundable, according to the ACCC. It must also state whether the territory is exclusive, non-exclusive or limited to a site, whether the franchisor may change it, and whether the franchisee or the franchisor may sell online. The franchisor must also tell prospective franchisees to get independent legal, business and accounting advice before signing.
What is in the franchise agreement that can vary significantly between franchisors?
The Code sets minimum disclosure requirements, but the franchise agreement itself is a private contract and its terms can vary considerably. The ACCC says that after signing, a franchisor generally cannot change the agreement unless the franchisee agrees or the agreement itself allows it, and cannot make retrospective changes without the franchisee's written agreement.
Key areas where agreements commonly differ include territory rights, renewal conditions, specific purpose funds, and what the agreement says about changing the operations manual. On territory, the disclosure document must say whether the territory is exclusive, non-exclusive or site-limited, and whether the franchisor may change it. On specific purpose funds, the disclosure document must state the fund's purpose, who controls it and what the franchisee contributes, according to the ACCC.
Agreements must also state the capital expenditure required of a franchisee, with the rationale, amount, timing and nature of that expenditure, according to the ACCC. This is an area where the gap between what is in the disclosure document and what the actual outlay turns out to be can create real problems for a buyer who has not had legal and financial advice.
What are the cooling-off and early termination rights under the Code?
Cooling-off after signing:
- › A franchisee may terminate within 14 days of entering a new agreement, in writing, according to the ACCC. Money paid must be refunded within 14 days less reasonable expenses set out in the agreement.
- › A new franchisee taking over an existing agreement may terminate by the earlier of 14 days after becoming the franchisee or taking possession and control.
- › Where the franchisee leases or occupies premises from the franchisor or an associate, termination is also available within 14 days of receiving the proposed lease, or the final lease if materially different.
- › From 1 November 2025, a franchisee may opt out of the cooling-off period in writing, but only where they had or have a substantially similar agreement with the same franchisor for the same business, according to the ACCC.
End of term:
- › The franchisor must give an end-of-term notice at least six months before the term ends, or one month for terms under six months, according to the ACCC. The franchisor is not obliged to renew unless the agreement says so.
- › A franchisee wanting to exit early generally has very limited options. The franchisee may make a written proposal with reasons and the franchisor must respond substantively within 28 days.
- › Franchise termination rights do not end a lease. A franchisee may remain bound by a lease even after the franchise ends.
How does a solicitor help with reviewing a franchise agreement in Queensland?
Step 1: Talk to us
Get in touch and we will explain how the franchise review process generally works and what the fourteen-day consideration period means for your timeline.
Step 2: Review the documents
We review the disclosure document, the franchise agreement, any lease or sublease documents and any other agreements you are required to sign, and explain what each one commits you to in plain terms.
Step 3: Identify the key risks and questions
We identify areas in the agreement that are unusual, that give the franchisor broad unilateral rights, or that impose obligations beyond what the Code's minimum disclosure requires, and we raise those with you before the consideration period ends.
Step 4: Advise on your position and next steps
We advise on what the agreement allows you to do if things change, what the Code's dispute resolution process involves and whether any terms warrant further negotiation with the franchisor before you sign.
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What happens when there is a dispute under a franchise agreement?
The Code sets out a dispute resolution process that both parties must follow before taking other steps, according to the ACCC. The first step is a written notice of dispute. If there is no agreement within 21 days, either party can refer the matter to mediation or conciliation. The Australian Small Business and Family Enterprise Ombudsman helps parties access that process. Both parties must attend and act in good faith.
Where the franchisor changes the agreement without following the Code's requirements, or where a material fact was not disclosed before signing, a franchisee may have grounds to raise a dispute through this process. A solicitor can advise on whether a particular situation calls for that step and what the process involves in practice.
What does the Code say about restraint of trade clauses in Queensland?
A franchisor must not include a restraint of trade clause that applies when the agreement ends, in circumstances where the franchisor chose not to renew and specific conditions are all met, according to the ACCC. Those conditions include that the franchisee gave written notice to renew on substantially the franchisor's current standard terms, met the renewal conditions, was not in serious breach, did not misuse intellectual property or breach confidentiality, and could not claim goodwill compensation or received only a nominal or inadequate amount.
Outside that situation, a restraint of trade clause must not be unfair or go beyond what is reasonably necessary to protect the franchisor's legitimate interests. What is reasonably necessary in a particular case is something a solicitor can assess when reviewing the agreement, because the answer depends on the nature of the franchise, its territory and the industry it operates in.
"The fourteen days before you sign a franchise agreement exist precisely so you can read it carefully, get independent advice, and ask questions about anything that is unclear. Those days are more valuable than they might seem when the agreement is for five or ten years."
Jade Kickbusch, Principal, Brookwater Legal
When does the Code require a franchisor to compensate a franchisee?
From 1 November 2025, franchise agreements must provide compensation where the franchisor withdraws from Australia, rationalises its network or changes its distribution model, according to the ACCC. That compensation must cover lost profit, unamortised capital expenditure, goodwill and winding-up costs, plus the buy-back of specified stock and equipment.
This is a relatively new requirement and many franchisees in Greater Springfield and Ipswich who entered agreements before November 2025 may be operating under terms that predate it. Whether a compensation clause is in a particular agreement, and what it covers, is one of the specific things worth checking with a solicitor before renewing or transferring an existing agreement.
Frequently Asked Questions
How long is the mandatory consideration period before signing a franchise agreement in Queensland?
At least 14 days must pass after the franchisee receives all documents in final form before the agreement can be signed, according to the ACCC. No part of that period can be shortened by the franchisor.
Can a franchisor change the franchise agreement after I have signed it in Queensland?
Generally not without your agreement. The ACCC says a franchisor cannot make retrospective changes without the franchisee's written agreement, and can only change the agreement where the franchisee agrees or the agreement itself allows it.
What does the cooling-off period cover for a new franchise agreement in Queensland?
You may terminate within 14 days of entering a new franchise agreement, in writing, according to the ACCC. Money paid must be refunded within 14 days, less reasonable expenses set out in the agreement. Cooling-off does not apply to renewals or extensions.
What must a franchise disclosure document cover in Queensland?
Each recurring and one-off payment, territory rights, specific purpose fund details, required capital expenditure, and whether earnings information is provided, according to the ACCC. If earnings information is not provided the document must say so at Item 20.
How are franchise disputes resolved in Queensland under the Code?
The first step is a written notice of dispute, according to the ACCC. If there is no resolution within 21 days, either party may refer the matter to mediation or conciliation through the Australian Small Business and Family Enterprise Ombudsman, and both must attend and act in good faith.
Do you need a solicitor to review a franchise agreement in Springfield or Ipswich QLD?
The ACCC says franchisors must direct prospective franchisees to get independent legal, business and accounting advice before signing. A solicitor reviews the agreement and disclosure document and explains what the terms commit you to before the consideration period ends. Our conveyancing team assists clients with business and commercial agreements across Greater Springfield and Ipswich.
What happens if the franchisor did not give the disclosure documents on time in Queensland?
The Franchising Code of Conduct sets out the franchisor's obligations on timing and disclosure, according to the ACCC. A failure to meet them may give the franchisee grounds to raise a dispute through the Code's dispute resolution process, and a solicitor can advise on the options in a particular situation.
Your Next Steps
A franchise agreement is a long-term commercial commitment, and the protections the Franchising Code of Conduct provides are most useful when you know about them before you sign rather than after something goes wrong. For buyers in Springfield, Ipswich and Greater Springfield, the fourteen-day consideration period is the window in which legal and financial advice makes the most practical difference.
If you're working through a franchise agreement, the right advice early makes the process simpler. Contact the Brookwater Legal team or call (07) 3437 8555 to talk through where you stand.
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External Resources
Brookwater Legal · This article contains general information only and does not constitute legal advice. It does not take into account your individual circumstances. You should obtain legal advice about your own situation before acting on anything in this article. Liability limited by a scheme approved under Professional Standards Legislation.
