Franchising for new migrants: opportunities, protections and the data gap

• Official data is missing. The 2023 Treasury review of the Franchising Code said information about franchising by culturally and linguistically diverse (CALD) groups, First Nations people and people living with a disability is even harder to find than other franchise data.
• In Griffith University's 2016 survey, 18% of responding franchisors actively recruited migrants or new Australians. In the 42 systems that reported migrant franchisees, the median share was 32%. The survey series ended in 2016.
• The ACCC publishes its guide 'Buying and running a franchise' in Arabic, Simplified Chinese, Hindi, Korean, Punjabi and Vietnamese.
• Phone interpreting through TIS National (131 450) can connect you to the ACCC and to the small business ombudsman's information line.
• Nearly a quarter of the new disputes the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) case-managed in the June quarter of 2025 involved an owner who spoke a language other than English at home. That covers all industries, not only franchising.

These are the only figures we could verify. All come from franchisor surveys, stakeholder estimates or dispute records, not official counts of franchisees.

• Griffith University, 2016: of 236 franchisors answering, 18.2% actively recruited migrants or new Australians (people who arrived in the previous 5 years), 73.3% did not and 8.5% planned to.
• Among the 42 systems that reported migrant franchisees, the median share was 32%, and just over half said migrants made up more than 30% of their franchisees.
• The countries of origin those franchisors named most often were India (20 franchisors) and China (19).
• Treasury review, 2023: some stakeholders estimated CALD representation among franchisees at up to 60%, against 29.5% of the Australian population and 29.8% of self-employed people. The review reported this as an estimate, not a measurement.
• The same review found that education and outreach don't adequately consider the needs of Indigenous and CALD communities, and recommended special regard for CALD and First Nations audiences in a planned government franchising website.
• ASBFEO, June quarter 2025: nearly one quarter of new disputes with a dedicated case manager involved an owner who spoke a language other than English at home, most often in transport, postal and warehousing, and construction.
• No official dataset shows how migrant franchisees fare over time, and there is no official franchise failure rate for anyone in Australia.

• A ready-made system. A franchise can reduce how much local business knowledge you need on day one, but it doesn't remove the risk that the business won't earn enough.
• Finance. One submission to the 2023 review argued that new immigrants find it hard to get small business finance without a strong third party, such as a franchisor, supporting their lender. Test that with lenders yourself rather than taking the franchisor's word for it.
• Complex documents. Stakeholders told the review that disclosure materials are particularly hard for franchisees from CALD backgrounds, and that some rely on community leaders or trusted advisers instead of formal advice.
• Trusted recommendations. A friend or community leader who recommends a system may be well meaning, or may be paid a referral fee. Ask them directly, and do your own checks either way.
• Visa promises. We found no current Australian visa granted for buying a franchise, so read our guide to franchises and visas before you rely on any such claim.
• English-only paperwork. Nothing in the Franchising Code requires a franchisor to translate the disclosure document or the agreement, so plan and budget for your own interpreter or translator.

The Franchising Code gives every prospective franchisee the same protections, whatever their background or visa. They come in this order.

1. The ACCC's information statement, no later than 7 days after you formally apply or express interest, and before the other disclosure documents.
2. The disclosure document, a copy of the Code and the franchise agreement in the form it will be signed. You can ask for them in printed form, electronic form or both.
3. A 14-day consideration period: the franchisor can't sign until 14 days after you receive those documents, and any payment you make in that time must be refunded within 14 days of your written request.
4. Signed statements, before a new agreement, that you received and had a reasonable chance to understand the disclosure document and the Code, and that you got legal, business and accounting advice or chose not to.
5. A ban on making you sign away what you were told: the franchisor can't require a general release of its liability or a waiver of its verbal or written representations.
6. A 14-day cooling-off period after you enter into a new agreement, with a refund within 14 days, less only reasonable expenses the agreement sets out.
7. After you sign, a complaint procedure and then mediation through ASBFEO. Your agreement can't force you to take a dispute outside the state or territory where your business is based.

• Translated ACCC guides: 'Buying and running a franchise' is on the ACCC's Other languages pages in Arabic, Simplified Chinese, Hindi, Korean, Punjabi and Vietnamese.
• ACCC interpreter: call TIS National on 131 450, then give them the ACCC's number, 1300 302 502.
• ASBFEO interpreter: call TIS National on 131 450, tell the operator your language, and ask them to call the Australian Small Business and Family Enterprise Information Line on 1300 650 460. The line is open 8am to 6pm Australian Eastern time, Monday to Friday.
• ASBFEO's website can be machine-translated with Google Translate, but ASBFEO says the English version is the official text.
• Use a professional interpreter, not the franchisor's staff or a relative with a stake in the deal, for any meeting about money or contract terms.
• Pay for a professional translation of key clauses, or ask your lawyer to explain the agreement in a meeting with an interpreter, before you sign.

• Promises that buying the franchise will get you a visa or permanent residency.
• Pressure to sign, or to pay a deposit you can't get back, before you have had the documents for 14 days.
• Being told you don't need a lawyer, or being steered to an adviser the franchisor chooses.
• Earnings figures given only verbally, in your language, but never in writing.
• A seller or broker who shares your language but won't put answers in writing.
• Requests for cash, or for payment into a personal account rather than a business account.
• A resale price justified by what the business could do for a visa or sponsorship, rather than by its accounts.

If you employ staff, including visa holders, workplace law applies from your first shift. A recent case shows what is at stake for the whole system.

• In June 2024 the Fair Work Ombudsman secured $1.44 million in penalties against the franchisor of the 85 Degrees brand in Australia, over underpayments at eight of its franchisee-operated outlets in Sydney in 2019.
• The affected workers included young workers and visa holders. Nine were underpaid a total of $32,321, and the individual franchisees back-paid them in full.
• It was the first time the Ombudsman used the 'responsible franchisor entity' provisions in court: a franchisor can be liable if it knew, or reasonably should have known, that franchisees would underpay, and didn't take reasonable steps to prevent it.
• Before you buy, ask what workplace-law support the franchisor gives: payroll systems, award guidance, record-keeping templates and training.
• Migration law adds duties for anyone employing visa holders. Our guide to franchises and visas sets them out.

• Have I read the ACCC's 'Buying and running a franchise' guide, in my language if it is available?
• Did I receive the information statement, the disclosure document, the Code and the final agreement, and have I had 14 full days with them?
• Has an interpreter or translator helped me understand every clause I'm unsure about?
• Have I spoken to current and former franchisees myself, not only people the franchisor chose?
• Have an independent franchise lawyer and an accountant reviewed the deal?
• Are all earnings figures and promises in writing?
• Do I know how to reach the ACCC and ASBFEO through a TIS interpreter if something goes wrong?