The franchise agreement: what you need to know

Sarah Stowe
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When you buy a franchise, you’ll be signing a business contract with the owner of the brand, the franchisor. And that’s what the franchise agreement is, a business contract that sets out rules and obligations that both sides need to follow.

Key points highlighted

In this podcast we highlight some of the differences that you will find in a franchise agreement as opposed to a business contract. It’s a must-read document, because it shapes how you can run your new business and what you can do if there are disagreements with the franchisor. The franchise agreement will also outline what has to happen when you decide to sell your business.

This podcast takes an overview of the key elements of the agreement – each brand will have its own version, so franchise buyers do need to read it.

Show notes

The franchise agreement is different from the disclosure document, which is referenced here. That’s another of the important documents handed to a franchise buyer.

Would-be franchisees will also get a copy of the Key Facts Sheet, which is a tool that can help readers navigate the disclosure document. It has to conform to a standard format.

You can find out more about this on the ACCC website

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