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Franchising in Brisbane’s Hospitality Industry – Legal Tips Before You Sign

  • Writer: Raymond Duffy
    Raymond Duffy
  • Nov 7
  • 4 min read

Introduction

Brisbane’s vibrant café, restaurant, and hospitality scene offers enormous opportunity for aspiring franchisees. From bustling laneways in Fortitude Valley to the relaxed café culture of West End and the fast-growing dining precincts of Chermside and Springfield, hospitality franchises continue to expand across the city.


But before you sign any agreement, it’s crucial to understand that buying into a hospitality franchise is not just a business decision — it’s a legal commitment. Franchise agreements, leases, and disclosure obligations carry long-term consequences that can significantly affect your financial and operational success.


At Greyson Legal Brisbane Franchise Lawyers we help buyers in the hospitality industry make informed decisions, identify risks, and negotiate fair terms. Here’s what you should know before signing.


Barista making coffee
Barista making coffee

Review the Franchise Disclosure Document Thoroughly

Under the Franchising Code of Conduct, franchisors must provide you with a Franchise Disclosure Document (FDD) at least 14 days before signing any franchise agreement or making any non-refundable payment.


For hospitality businesses, pay close attention to:

  • Initial and ongoing fees, including royalties and marketing levies

  • Fit-out costs and refurbishment obligations

  • Turnover forecasts and profit assumptions

  • Supply chain arrangements and pricing controls

  • Details of other franchisees (to help you assess network performance)


Greyson Legal Brisbane Franchise Lawyers can help you interpret these details and spot potential red flags — such as hidden costs, restrictive supplier terms, or unrealistic financial projections.


Understand the Franchise Agreement – Your Legal Contract

The franchise agreement (and Procedures Manuals) governs the entire relationship between franchisor and franchisee. In the hospitality sector, these agreements can be especially detailed, covering everything from menu items and food presentation to hours of operation and marketing contributions.


Key clauses to review include:

  • Term and renewal rights: How long does the agreement last, and what happens at expiry?

  • Territory and exclusivity: Will you have protection from competing outlets nearby?

  • Operational control: What flexibility do you have in managing the business day-to-day?

  • Termination rights: On what grounds can the franchisor terminate the agreement?

  • Resale restrictions: What are the conditions if you wish to later sell the franchised business?


Hospitality franchises often operate under tight brand control, so it’s vital to understand what discretion you’ll actually have once operating.


Know the True Costs Beyond the Purchase Price

The upfront purchase or establishment cost is only part of the equation. Hospitality franchises usually involve significant ongoing costs, such as:

  • Food and beverage supply costs (often mandated from approved suppliers)

  • Staff training and uniform expenses

  • Marketing fund contributions

  • Equipment maintenance and replacement

  • Rent and outgoings (particularly in shopping centres or high-traffic precincts)


Greyson Legal Brisbane Franchise Lawyers can work with your accountant to review projected cash flow and profitability to ensure the numbers stack up before you commit.


Check the Lease or Premises Licence Carefully

Location is everything in hospitality — and so are the lease terms that come with it.If your franchise operates from leased premises, the Retail Shop Leases Act 1994 (Qld) will likely apply, imposing disclosure and procedural requirements on the landlord and tenant.


Greyson Legal can help you:

  • Review and negotiate lease terms to align with your franchise term

  • Ensure you receive the Lessor Disclosure Statement before signing

  • Identify responsibilities for fit-outs, maintenance, and repairs

  • Check for relocation or demolition clauses that could affect your investment


Your lease and franchise agreement should always complement each other — not conflict.


Verify Compliance with the Franchising Code of Conduct

The Franchising Code of Conduct, administered by the ACCC, governs every franchise relationship in Australia.Both franchisors and franchisees are required to act in good faith and the Code provides a dispute resolution mechansim. Franchisor's must comply with disclosure and marketing fund transparency obligations under the Code.


As local franchise lawyers in Brisbane we will ensure that your franchisor’s conduct and documentation comply with the Code and that you fully understand your rights and remedies if issues arise.


Seek Independent Legal and Financial Advice

Before signing, the Franchising Code of Conduct recommends (but does not mandate) that you to obtain independent legal, accounting, and business advice.


Greyson Legal can provide a legal advice certificate and guide you through:

  • Negotiating fairer terms where possible

  • Understanding risks in franchise and lease documentation

  • Advising on personal guarantees, indemnities, and liability exposure

  • The franchise agreement, disclosure document and ancillary documentation


Getting clear advice upfront can prevent costly disputes and financial strain later.


Assess the Franchisor’s Support and Reputation

In hospitality, success often depends on brand reputation and operational support.Before you sign:

  • Speak with existing franchisees in Brisbane or nearby areas

  • Visit multiple locations to gauge performance and culture

  • Review how the franchisor supports franchisees in marketing, staff training, and local promotions

  • Check if there have been past disputes, terminations, or legal actions


Understanding the franchisor’s track record gives you a clearer picture of what to expect once you open your doors.


Why Legal Advice Matters Before You Sign

Hospitality franchises can be profitable and rewarding, but they come with high operational costs, strict compliance obligations, and complex contracts. Having an experienced franchise lawyer in Brisbane review your documents ensures you understand every term and protect your investment from the start.


At Greyson Legal, we specialise in franchise law for hospitality businesses across Brisbane — from cafés and restaurants to quick-service outlets and bars. We offer clear, practical legal guidance to help you buy with confidence.


Need Help Buying a Hospitality Franchise in Brisbane?

Before you sign, get professional legal advice from Greyson Legal | Franchise Lawyers Brisbane.We’ll help you review your franchise documents, understand your risks, and protect your investment in Brisbane’s fast-paced hospitality industry.


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