How to buy a franchise in Australia: the complete buyer's guide

The rest of this guide breaks that down: how to shortlist systems, how to read the costs honestly, what the franchisor must legally give you, and the checks that separate a good system from an expensive mistake.

Start from what you can actually invest — the all-in establishment cost, not the headline franchise fee. A $24,000 franchise fee can still be a $95,000 all-in commitment once equipment, a vehicle and working capital are counted. Filter by category and capital band, and compare fees against the category median before you fall for a brand.

• Match the all-in cost (including working capital) to your available funds, keeping a buffer.
• Compare royalty and marketing levy against the category median — a royalty well above median needs a reason.
• Check the Disclosure Register status: a current entry is the baseline, not a bonus.

Every franchise cost falls into four buckets: the one-off initial fee, the establishment/fit-out spend, ongoing fees (royalty and marketing levy on gross sales), and working capital to cover the ramp-up before the site is cash-flow positive.

Before you can sign or make a non-refundable payment, the franchisor must give you a disclosure document, the franchise agreement in final form, a copy of the Franchising Code, and an information statement — at least 14 days beforehand. The disclosure document is the single most valuable thing you will read.

• Item 6 — franchise numbers: units opened, closed and transferred. A high churn of closures is a warning.
• Fees and payments: the full schedule, not just the fee you were quoted.
• Existing and former franchisees: contact details you can and should use.
• Litigation: current or past proceedings involving the franchisor.

Call current and former franchisees from the disclosure document — this is the highest-signal step and the one buyers most often skip. Ask what they actually earn, what surprised them about the costs, and whether they would buy again. Have an accountant review the numbers and a franchise lawyer review the agreement.

1. Call at least five current franchisees and two former ones.
2. Have an accountant stress-test the financial model with conservative revenue.
3. Have a franchise lawyer review the agreement and disclosure document.

After signing, the Franchising Code 2025 gives you a 14-day cooling-off period. If you exercise it, the franchisor must repay what you paid, less its reasonable expenses. This is a statutory right — you never need the franchisor's permission to use it, and a franchisor that discourages it is a red flag.