Franchise Purchases and Resales: Legal Considerations

Law Tram simplifies franchise purchases and franchise resales by connecting you with licensed Australian lawyers who understand disclosure requirements, franchise agreements and the legal risks involved in buying or selling a franchise. This fully online and obligation-free service helps you make informed decisions before committing to any terms.

Buying a franchise? It’s not just a standard business purchase

Purchasing a franchise whether brand new or as a resale from an existing franchisee involves complex legal documents and obligations that go beyond a typical business sale. These include franchise agreements, disclosure documents, marketing levies, supply restrictions, and performance obligations that may limit how you operate the business.

Franchisors are legally required to provide detailed disclosures, but it’s essential to get independent legal advice before signing anything. Many disputes arise when buyers don’t fully understand the terms or fail to negotiate key provisions.

Law Tram connects you with lawyers who can review franchise documents, explain your obligations, and help you make informed decisions before entering the agreement.

Person consulting an Australian lawyer about a franchise resale.

Law Tram's Legal Partners can assist with franchise matters, including:

Why choose Law Tram

Person reviewing franchise resale documents with a legal adviser in Australia.

How it works

Confidential and Secure Questionnaire

Start by completing our secure online questionnaire. This step allows you to provide essential details about the franchise you’re considering and your key questions.

Confidential Legal Summary

Law Tram’s advanced technology generates a confidential legal summary of your matter while keeping your personal and business details private.

Review by Licensed Australian Lawyers

Your confidential legal summary is shared with our network of vetted lawyers who review your case to determine how they can assist.

Connect with a Lawyer

If a lawyer believes they can help, they will initiate a chat with you through the Law Tram platform. Your contact details remain private unless you choose to share them.

No Obligation

You are under no pressure to retain any lawyer unless you are confident in their ability to assist. Law Tram empowers you to make informed decisions.

What Others Are Saying

Jaya – Brisbane

I almost signed the franchise agreement without advice. The lawyer flagged several clauses that would have locked me in unfairly.

Ben – Newcastle

The franchisor said everything was standard. I’m glad I checked — there were hidden costs and no real territorial protection.

Ming – Melbourne

I bought a resale franchise. The lawyer reviewed the documents and helped me renegotiate key parts with the seller and franchisor.

Legal information only – not a substitute for advice

This page provides general legal information only. It is not legal advice and should not be relied on as such. Franchising is a regulated area of law with specific obligations under the Franchise Code. You should seek advice from an Australian Legal Practitioner before entering any franchise arrangement.

Note: “Free service” refers only to Law Tram’s platform and process, not the legal advice itself.

Person seeking a solicitor’s guidance on selling an existing franchise in Australia.

Take the first step toward resolution

Law Tram offers a secure, efficient and supportive way to connect with lawyers who understand the legal issues involved in franchise purchases and resales. Whether you are reviewing disclosure documents, negotiating terms or planning an exit, our platform helps you access tailored legal advice before you proceed.

Take the first step with clarity and peace of mind by starting your free online consultation with Law Tram now.

Frequently Asked Questions

You should receive a franchise disclosure document, a draft franchise agreement, and a copy of the Franchise Code of Conduct at least 14 days before signing.

Yes. These documents are lengthy and can contain clauses that expose you to financial or legal risk. Legal advice ensures you understand what you're signing.

You inherit the franchise rights under the current terms — but also any existing obligations, liabilities and franchisor expectations. Legal review is essential.

Sometimes. While many franchisors prefer standard agreements, some will consider reasonable changes, especially in resales or new locations.

Depending on the agreement, you may still owe fees or face termination penalties. Legal advice can help limit these risks before you sign.

Yes. Franchise agreements are detailed and binding, and a lawyer can help you understand fees, restrictions, renewal rights and long-term obligations.

Key areas include performance history, compliance issues, transfer conditions, franchisor approval requirements and any disputes involving the business.

Often yes, especially regarding transfer fees, equipment condition, ongoing liabilities and settlement terms. A lawyer can help you negotiate safer conditions.

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