Grant of franchise
What it means
The grant of franchise is the moment the franchisor confers the rights, to use the brand, systems and territory, on the franchisee. It is defined by the franchise agreement and triggers the Code's protections around disclosure and cooling-off.
Understanding when the grant occurs matters, because the disclosure period must precede it and the cooling-off period runs from signing or first payment around it.
In practice
Do not let a franchisor rush the grant. Ensure you have had the full 14-day disclosure period and taken advice before the agreement is signed and the franchise is granted.
A real example
After the 14-day disclosure period and legal review, the franchisor formally grants the franchise by both parties signing the agreement, starting the franchisee's 14-day cooling-off window.
Grant of franchise, FAQs
What is the grant of a franchise?
The franchisor formally awarding the franchisee the right to operate under the system, defined by the franchise agreement. It triggers the Code's disclosure and cooling-off protections.
When can a franchise be granted?
Only after the mandatory disclosure period. The franchisor must give you the disclosure document and agreement at least 14 days before the grant.
See the full franchise glossary, the Fee Index or our buyer guides.