The franchise cooling-off period explained
The law gives you a way out after you sign. Knowing exactly how it works removes the pressure to commit before you are ready.
What is the franchise cooling-off period?
The 14 days before you sign
Cooling-off is the second protection, not the first. The franchisor must first give you the ACCC's information statement, then the disclosure document, the agreement in the form it will be signed and a copy of the Code, and it can't sign with you until 14 days after you receive them. Any money you pay during those 14 days must be refunded within 14 days if you ask in writing. That pre-signing consideration period is your main window for due diligence; cooling-off is the safety net after.
What you get back
If you exercise cooling-off, the franchisor must refund all payments made under the agreement, less its reasonable expenses, and those expenses must be set out in the agreement. It cannot keep the whole initial fee simply because you changed your mind.
- What your franchisor can't do: 12 rules in the Franchising Code10 min
- The franchise 14-day rule: what restarts the clock and when deposits must be refunded9 min
- How long does it take to buy a franchise?6 min
- Buying a second franchise unit: when disclosure and cooling-off can be waived9 min
- How to end a franchise agreement lawfully: breach notices, no-fault exits and exit proposals9 min
- Buying a franchise for a visa or PR in Australia: the 2026 position10 min
Get “The franchise cooling-off period explained” as a printable checklist
Plus a short, practical series on getting franchise-ready. No spam.
Frequently asked questions
How long is the cooling-off period for a franchise in Australia?
14 days after you enter into the franchise agreement, under the Franchising Code of Conduct. It applies to new agreements, not to renewals or extensions.
Do I get a refund if I use the franchise cooling-off period?
Yes. The franchisor must repay amounts you paid, less its reasonable expenses, which must be set out in the agreement. It cannot retain the full initial fee simply because you withdrew.
Can a franchisor refuse to let me cool off?
No. Cooling-off is a statutory right under the Code; you do not need the franchisor's permission. A franchisor discouraging you from using it is a warning sign.
Keep researching
Continue this question in your AI assistant, or add FranchiseScope as a preferred source on Google so more of our franchise research reaches you.
Find a franchise that fits you
Build a free buyer profile and we'll match you to franchises expanding near you, and save your progress as you research. Private by default, no account needed to keep reading.