Franchising
Franchising is a key business model in Australia, generating over 500,000 jobs and bringing in over $135 billion in revenue each year
Since the introduction of the mandatory Franchising Code of Conduct more than 25 years ago, the complex web of regulations affecting the franchise sector has only continued to grow.
In addition to increased penalties and the introduction of the new super penalties, significant changes have been introduced over the past few years, creating new challenges for both Australian franchises and international franchises expanding into the country. Navigating the regulatory landscape requires sound, well-reasoned legal advice based on a strong understanding of Australia's franchising sector.
Allens' franchising law specialists, together with our experienced cross-practice team, can provide comprehensive support to franchisors and franchisees across all legal areas, including setting up, managing, buying and selling franchising networks.
How we can help
We represent a range of national and multinational clients in a variety of franchising matters including:
- litigation defending large corporate franchisors against claims brought by franchisees, including multi-party disputes;
- advising international franchisors on entry into Australia and establishing franchise networks and distribution arrangements;
- advising on complex franchise network restructuring;
- providing regulatory and compliance advice to both franchisors and franchisees;
- drafting franchise agreements and disclosure documents;
- advising on complex, large-scale corporate transactions involving franchise networks, including due diligence; and
- advising lenders and borrowers on taking security over franchise businesses.
We work across a variety of industries, including retail, automotive, banking and finance, restaurant and food, and security services.
As a member of the Franchising Council of Australia, we play an active role in keeping our clients abreast of developments in the area. We offer franchising clients a reminder service that tracks key Code-mandated and contractual deadlines.
You may also be interested in
Minimum fines of $10 million – why compliance with the Franchising Code is now more important than ever
Contravening certain provisions of the Franchising Code now attracts the new 'Super Penalty', meaning franchising and legal compliance teams need to be as vigilant as ever.
Franchising Code amendments locked in – what you need to know
Long-awaited amendments to the Australian Franchising Code have finally been implemented. These will increase the burden on franchisors, particularly in relation to pre-contractual disclosure. Read more here.
Franchisors beware: pecuniary penalties wash Geowash clean
In the Federal Court decision of ACCC v Geowash Pty Ltd, Justice Colvin imposed significant pecuniary penalties on a franchisor as well as its sole director and national franchising manager for unfair dealings with franchisees.
Experience
Supporting BYD's growth in the Australian market
Advised BYD on restructuring its Australian distribution network for BYD vehicles and establishing the Denza franchise retail network in Australia, together with data and other commercial arrangements with its dealers.
Advising Retail Zoo on Code compliance
Advising the franchisor of the Boost Juice, Betty's Burgers and Salsas networks on issues including updates to franchising documentation to comply with changes to the Franchising Code of Conduct.
El Jannah acquisition and restructure
Advised the franchisor on a transaction that resulted in a major investment in the business. This involved a restructure of the franchise arrangements, including preparing new franchise agreements and disclosure documents.
Strategic advice for Ford
We continue to advise Ford on its franchise agreements and obligations under the Franchising Code of Conduct. We also advised Ford on strategic issues arising from its decision to cease manufacturing operations in Australia in 2016.
Expanding IKEA's presence in Australia
Providing ongoing advice to Inter-IKEA (the international franchisor of IKEA stores) in relation to its franchise arrangements in Australia, including strategic expansion and restructuring of the network. This has included advising on compliance with the Franchising Code of Conduct, as well as other franchisors' obligations under Australian law.
Complex dispute resolution proceedings for Nissan
A multi-disciplinary Allens team advised Nissan on changes to its dealer network and successfully defended the company in disputes brought by former dealers. Allens supported Nissan with strategic advice and guidance through the Code-mandated dispute resolution process.
Pizza Hut's first significant international master franchise arrangement
Allens advised Yum! Brands Inc. and Yum! Restaurants Australia on the sale of Pizza Hut in Australia. The deal represents one of the first master franchise arrangements in the world for Yum! Brands Inc.
Advised BlueScope on new retail framework in South-East Asia
Provided guidance to BlueScope on transforming its retail distribution arrangements in several South-East Asian countries. This included advice on franchising in multiple jurisdictions and competition law issues, as well as data security and privacy concerns.
Advised on Westpac's RAMS
Advised RAMS Home Loans on Franchising Code compliance and the business-to-business unfair contract terms regime, and advised owner Westpac in relation to its strategic deliberations regarding the RAMS Home Loan business.
7-Eleven
Advising the franchisor of the 7-Eleven convenience store and petrol station network on competition and consumer law issues, matters arising from IT projects, as well as reviewing scheme marketing agreements.
Helping SsangYong relaunch into the Australian market
Assisted with incorporating the company, leasing its new Australia headquarters, preparing the franchising documentation and establishing the dealer network, as well as providing employment and advertising advice.
Drafted submissions on behalf of key automotive franchisors
Advised automotive franchisors regarding their submissions in response to the Federal Government's Automotive Franchising Discussion Paper (August 2021).
INSIGHT
IP year in review: Australian IP litigation and legislative developments in 2025
12 Mar 2026