Buying a franchise in Australia: a document checklist before you sign
Organise the disclosure document, franchise agreement and advice questions into a practical Australian buyer review packet.
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Short answer: Put the documents you receive into one dated packet, compare the disclosure document against the proposed agreement and financial assumptions, ask for missing or conflicting information in writing, and take the packet to independent legal and accounting advisers before signing or paying. A checklist helps you ask better questions; it cannot establish whether a particular franchise is a good investment.
What should go in the buyer packet?
| Document or record | What to compare | Question to carry forward |
|---|
| Disclosure document and supporting financial material | Version/date, fees, ongoing payments, network information and financial material against the offer you were shown. | Which assumptions are evidenced, and which are projections? |
| Franchise agreement and related schedules | Parties, territory, term, renewal, transfer, exit, supply, fit-out and dispute terms against the disclosure document. | What happens if sales or location plans change? |
| Information statement and other Code documents | What was delivered, in what order and when; preserve the delivery email or portal receipt. | Has the full set been supplied for this transaction? |
| Site, lease, finance and forecasts, if relevant | Who holds the lease, what costs sit outside the franchise agreement, and whose estimates underpin the cash-flow model. | What commitments exist if the franchise does not proceed? |
| Your adviser notes and written questions | Outstanding contradictions, oral representations and responses from the franchisor. | Which points need a written clarification or negotiated change? |
Ask your advisers to confirm the actual documents required in your circumstances. The ACCC's information and document obligations guide explains the information statement, disclosure and agreement process. Its disclosure document guide says a prospective franchisee must receive the disclosure document at least 14 days before signing a franchise agreement; do not treat receipt alone as proof that every prerequisite or exception has been resolved.
How do you turn paperwork into useful questions?
- List every file with its receipt date and version; keep the original, not only your annotated copy.
- Put each fee and recurring cost into one worksheet and note which document supports it.
- Mark places where the sales conversation and written terms differ; seek written answers.
- Map termination and renewal scenarios to your personal financial exposure.
- Give the same packet and question log to a franchise lawyer and independent accountant so their advice addresses the same facts.
The ACCC's guidance on Code changes is useful background, but an older summary cannot replace checking the current Code and your actual document versions. This article is about the buyer's decision packet, not a recap of the 2025 transition.
Frequently asked questions
Can I rely on a verbal earnings estimate?
Keep a note of who said what and when, and ask for the basis in writing. Have your accountant test the assumptions and your lawyer review how the written agreement treats representations.
Does the 14-day period mean I must sign on day 15?
No. It is a disclosure timing protection, not a recommendation to sign. Confirm the applicable timing and full process with an independent franchise lawyer. [ACCC: franchise disclosure document]
Next step: See Awelle's franchisee overview for document and research workflows. For the decision to buy, get independent legal and financial advice tailored to your packet.