Thinking of ditching the 9-to-5 and buying a franchise?
You’re not alone. Every month, thousands of Australians search online for advice on how to leave employment and run their own business and franchising is often at the top of their list. It’s a proven path: you get an established brand, a ready-made system, and a level of support you’d never get starting from scratch.
But here’s the reality: Buying a franchise is more than just a career move. It’s a major financial and legal commitment that can affect your income, your freedom, and your ability to sell your business down the track. That’s why people frequently type into Google things like:
- “Franchise hidden costs” because no one wants to discover surprise fees after signing.
- “How to sell a franchise” because planning your exit before you start is smart business.
- “Franchisee support expectations” because the level of training and help you get can make or break your success.
If you’re serious about making the leap, you need more than glossy brochures and sales talk. You need to know the questions that will cut through the marketing and show you whether this is truly the right move for you.
In this article, we’ll tackle the five key questions you should be asking before buying a franchise, questions that will help you make a confident, well-informed decision and avoid costly mistakes. And because franchising is as much about the fine print as it is about the big picture, we’ll also show you where legal advice can give you the clarity and protection you need.
1. What are the real costs and are there hidden fees in the franchise agreement?
Why this matters: One of the most common searches before buying a franchise is “franchise costs breakdown” or “hidden franchise fees”. And for good reason, what you see in the glossy franchise brochure is often only part of the financial story.
The total investment goes far beyond the initial franchise fee. You’ll also need to factor in:
- Ongoing royalties: a percentage of your revenue, often paid monthly.
- Marketing fund contributions: mandatory payments that may or may not drive leads to your location.
- Supply markups: where you must buy stock from the franchisor at set prices.
- Fit-out, refurbishment and equipment costs: sometimes recurring during your term.
- Technology fees: for software, point-of-sale, or systems access.
These costs can significantly affect your margins, cash flow, and how long it takes to break even. Even “small” fees add up over time and can make the difference between a franchise that thrives and one that struggles.
Where legal advice helps: We go through your franchise agreement land the disclosure document line by line to identify every single cost you’re committing to, including those that aren’t clearly labelled or are hidden behind vague wording like “as determined by the franchisor” or “from time to time.” We’ll explain:
- What costs are payable upfront and which costs are ongoing throughout the term of the franchise agreement.
- Which costs are refundable and which are not if you exit during cooling off.
- Which costs are fixed and predictable.
- Which are variable and under the franchisor’s control.
You should then speak with your financial team to establish how these expenses will impact your profitability and exit value.
By the time you finish the review, you’ll know your true cost of ownership, not just the marketing figure, so your business plan and financial forecasts are based on facts, not assumptions.
2. How strong is the brand and what rights do I have to use it?
Why it matters: One of the biggest selling points of a franchise is that you’re buying into an established brand with an existing reputation and customer base. But here’s the catch: not all “established” brands are equal, and not all territory rights are created the same.
People searching for “franchise brand strength”, “franchise territory rights”, or “how to check if a franchise is worth it” are usually trying to figure out two things:
- Will this brand actually attract customers in my area?
- Will I have exclusive rights to use the brand in my territory, or could the franchisor set up a competitor store nearby?
These are critical questions because strong brand equity can give you an instant head start, while weak or poorly protected branding means you’re starting from scratch but paying for the privilege.
What to look at before you buy
- Market presence: How well known is the brand in your area? Do people recognise it, and do they have positive associations with it?
- Territory protection: Does your agreement clearly state you have exclusive rights in a defined area? How is that area mapped out, by kilometres, postcode, or something vague?
- IP protection: Is the brand name, logo, and other intellectual property properly registered and protected by trademarks? If not, there’s a risk someone else could use something similar and damage your reputation.
- Franchisor control: How much say do you have over branding, marketing materials, and promotions? Can they change the brand direction without your approval?
Where legal advice helps: We’ll review the brand and intellectual property clauses in your franchise agreement so you know:
- Exactly what rights you have to use the brand name, logo, and other IP
- Whether your territory is genuinely exclusive and how it’s defined
- If there are loopholes that could allow the franchisor to set up competitors nearby
- How much control the franchisor retains over brand usage and marketing
By understanding the fine print, you can avoid the shock of paying for a “prime territory” only to find the franchisor can open another location down the road, or that your “exclusive” rights aren’t actually exclusive.
3. What support and training do I actually get and is it enforceable?
Why it matters: Search terms like “franchise support guarantees”, “franchise training included” and “franchise ongoing support” are popular because they tap into a real concern: will the franchisor give you the help you need, or will you be left to figure things out on your own? Many new franchisees discover too late that what sounded like a robust training program in the sales pitch was actually a one-week crash course, or that “ongoing support” is nothing more than an occasional email.
Training and support aren’t just nice-to-have extras, they’re part of the engine that keeps your business running smoothly and competitively. Without solid onboarding, operational guidance, and marketing help, even the most recognised franchise brand can struggle at the local level.
When you’re reviewing the level of training and support you will get, ask the Franchisor:
- How long is the initial training and is it delivered in person, online, or both?
- Who delivers the training, experienced operators or head office staff with limited field experience?
- Is there a structured ongoing support program or is it at the franchisor’s discretion?
- What help will I get with marketing, operations, technology and staffing?
- Is there regular performance review and feedback?
Where legal advice helps: We review your franchise agreement to see exactly what support and training you’re legally entitled to, not just what’s been promised verbally or in glossy brochures. That means looking for:
- Clauses that lock in Franchisors obligations such as minimum training
- Clear commitments on ongoing support, frequency, method, and scope
- Service level standards for marketing, technology, and operational assistance
By having these details written into your agreement, you’re not relying on goodwill, you have enforceable rights. This protects your investment and sets you up with the skills and resources to make the franchise work long-term.
4. What’s my exit strategy and can I sell once I’m ready?
Why it matters: One of the most common Google searches from franchise buyers is “how to exit a franchise” or “selling a franchise business.” That’s because even if you’re excited about running it now, most people eventually want the option to sell, pass it on, or move into something new.
Your franchise agreement will set out the exact rules for how and when you can exit and those rules can have a massive impact on your future options and the price you’ll get. It’s not just about finding a buyer; you also need to know:
- Franchisor approval: Most agreements require you to get the franchisor’s written approval before selling. Some give them the right to reject buyers without much explanation.
- Transfer fees: These can be a set amount or a percentage of the sale price, and they can eat into your profit.
- Non-compete clauses: These may limit the industries or areas you can work in after you sell.
- Training obligations for the new owner: Some franchisors require you to train the incoming franchisee (unpaid) as part of the transfer process.
- Right of first refusal: In some agreements, the franchisor has the right to buy your business before you sell to an outside party.
Where legal advice helps: We can go through your franchise agreement in detail to confirm:
- If you actually have the freedom to sell when you want.
- What conditions or restrictions will apply to you and the buyer.
- Any hidden clauses that could delay the sale or reduce your final sale price.
We’ll flag anything that could block a clean exit, create extra costs, or make your business less attractive to potential buyers. That way, you’ll go into the purchase knowing exactly how your eventual exit will work and you can plan for a sale that protects the value you’ve built. See more about selling your business.
5. What are current franchisees saying and does the agreement back that up?
Why it matters: Before buying, one of the most valuable steps you can take is to speak directly with current and former franchisees. It’s exactly what people are searching for when they type things like “franchisee reviews” or “franchisee experience” into Google. These conversations give you real-world insight into how the franchise operates beyond the glossy sales pitch.
Ask them questions like:
- Are they meeting their income expectations after all expenses?
- What kind of support and training have they actually received?
- How responsive and fair is the franchisor?
- Are there any surprises that weren’t clear when they signed up?
- Would they invest again knowing what they know now?
These first-hand experiences can highlight patterns, good or bad, that you won’t find in marketing material.
The problem: Not everything a franchisee tells you will match what’s in your agreement. Sometimes their experiences are shaped by informal arrangements, past versions of the contract, or unique circumstances that won’t apply to you. If you rely solely on their feedback without checking it against the legal document you’re about to sign, you might assume you’re entitled to benefits or freedoms that simply aren’t guaranteed.
Where legal advice helps: We help you bridge the gap between what you’re told and what’s legally binding. That means:
- Reviewing your franchise agreement line-by-line to confirm whether the promised support, rights, and conditions are actually written into the contract.
- Identifying areas where there’s a mismatch between what the franchisor says and what they’re obliged to deliver.
- Flagging any clauses that could limit your ability to enjoy the same benefits or flexibility that existing franchisees talk about.
By combining real-world feedback with a solid legal review, you get a 360° view of the opportunity so you can make a decision based on facts, not just anecdotes.
Buying a franchise can be one of the quickest ways to go from employee to business owner. You step into a business model that’s already been tested, backed by a recognised brand, and supported by systems you don’t have to build from scratch. Done well, a franchise can give you financial independence now and create an asset you can sell in the future.
But here’s the truth that experienced franchise lawyers and seasoned business owners know, your success isn’t just about the brand or the product. It’s about the terms you agree to before you start. The franchise agreement you sign will set the rules for how you operate, what you pay, how you can grow, and what happens when you want to sell.
This is why asking the right questions before buying a franchise is critical. It’s also why so many people search for things like:
- “Hidden franchise fees”
- “Franchise exit restrictions”
- “Do I need a lawyer before buying a franchise?”
The answer to that last question is always yes if you want to protect your money and your future.
Where legal advice helps is in turning those questions into concrete answers, based on what’s actually written in your franchise agreement not just what’s promised in the sales meeting. We can:
- Uncover hidden costs and ongoing obligations.
- Clarify your rights to the brand, your territory, and your customers.
- Check if promised support and training are enforceable.
- Explain your exit rights and restrictions.
- Match the fine print to what current franchisees say.
If you’re ready to move from researching to buying, get the peace of mind that comes from knowing exactly what you’re signing. Book your franchise agreement review with us today. We’ll help you protect your investment, reduce your risks, and set yourself up for long-term success as a business owner.
How Rise Legal Can Help
At Rise Legal, we specialise in helping Australian businesses get legally protected and stay that way. We don’t bill by the hour, and we don’t speak in legal jargon. Just practical, strategic legal advice designed to help your business grow.
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Disclaimer: This blog post is intended for informational purposes only and should not be considered legal advice. Consult with a qualified commercial lawyer for personalised advice related to your specific circumstances.
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