Franchising is a business concept that allows a business to operate under the established brand of the other business. If you are a franchisee, you can sell a product or service of the franchisor for a fixed period of time, and in return you pay the franchisor the franchise fee as agreed by you and the franchisor in the franchise agreement. In addition, you are obliged to follow the operational guidelines and other requirements as set out in the agreement and franchising manuals.

Franchising may be a great alternative way to own a business, or to expand your business opportunity into new markets and increase your market share. However, you must consider franchising carefully because franchising is a unique business model whereby you are as the franchisee do not have the absolute power to control the way you manage your business, but you must follow the operational standards and guidelines set out in the franchise agreement.

In addition, you must also consider your legal obligations and the franchising law before buying a franchise. In Australia, you are required to comply with mandatory industry Franchise Code of Conduct and Australian Consumer Law.

Further, the franchise agreement and other documents in respect to franchising in most cases are lengthy legal documents that contain complex legal language and issues that require franchise legal experts to analyze and explain.

Tang Law can assist you to understand your rights and responsibilities pertaining in the franchise documents and under the law. We can also assist you to understand the risks involved when buying into franchising and provide you with a risk appraisal and risk management strategy if required.


When buying a franchise, you commit to enter into a franchise agreement by which you are legally bound by the terms set out in the agreement.


Selling a franchise is different to selling your own established business, you must ensure that the sale is in accordance with the agreement.


If you are a franchisor, and consider selling your franchise business, Tang Law can assist you with the following services.