Retail and Shopping Centre Franchises on the Gold Coast: Key Legal Issues to Watch

Introduction

The Gold Coast is one of Queensland’s most dynamic retail hubs — home to world-class shopping destinations like Pacific Fair, Robina Town Centre, Harbour Town, and Westfield Coomera.

With high foot traffic and strong consumer demand, these centres offer attractive opportunities for franchise operators in food, fashion, and specialty retail.

However, opening a retail or shopping centre franchise on the Gold Coast comes with complex legal obligations that extend beyond the franchise agreement. Prospective franchisees must also consider lease arrangements, disclosure obligations, and compliance with both the Franchising Code of Conduct and the Retail Shop Leases Act 1994 (Qld).

At Greyson Legal | Franchise Lawyers on the Gold Coast we regularly advise franchisees entering into franchises operating out of shopping centres. Below, we outline the key legal issues you should understand before signing.

Understanding the Relationship Between the Franchise Agreement and the Lease

When your franchise operates from a retail tenancy within a shopping centre, you are bound by two major contracts:

• The franchise agreement with the franchisor; and

• The lease or licence to occupy with the landlord.

These two documents often have overlapping obligations. For instance:

• Your franchisor may control the location or fit-out requirements but the landlord may impose separate design standards.

• The franchise term and the lease term may not align — leaving you exposed if the lease expires first.

• Rent payments, fit-out costs, and refurbishments may be governed by both agreements.

At Greyson Legal Gold Coast Franchise Lawyers we can review both documents to ensure they complement each other and help to to negotiate any inconsistencies before you commit.

Lease Disclosure Requirements Under Queensland Law

If your franchise operates within a shopping centre, the Retail Shop Leases Act 1994 (Qld) applies. This legislation imposes specific disclosure obligations designed to protect tenants.

Before signing a lease, the landlord must provide you with:

• A Lessor’s Disclosure Statement, outlining key lease terms, rent, outgoings, fit-out contributions, and any redevelopment plans; and

• A draft lease,

for the prospective tenant's review.

Failure by the landlord to provide proper disclosure can give you rights to terminate or claim compensation.

Greyson Legal can review these documents to ensure that disclosure requirements are met and that you understand the full cost and risk exposure before entering into the lease.

Rent, Outgoings and Shopping Centre Costs

Shopping centre leases can be expensive. In addition to base rent, tenants may be responsible for:

• Marketing and promotion levies

• Outgoings,

• in addition to the costs of utility costs directly attributed to the premises, such as, electricity.

Under Queensland law, certain outgoings are non-recoverable by landlords. As Gold Coast leasing lawyers, Greyson Legal can help you identify which costs are legitimate and ensure you’re not paying more than you should.

Fit-Out Obligations and Refurbishment Costs

Most shopping centres require tenants to complete an approved fit-out before opening. In a franchise, the franchisor may specify design standards, colour schemes, and equipment — but the landlord often has its own fit-out approval process and deadlines.

Common issues include:

• Who pays for the initial fit-out and future refurbishments

• Whether the franchisor controls the contractors

• Requirements to restore the premises at the end of the lease

Greyson Legal can assist by reviewing both the lease and franchise documents to confirm who bears these obligations and help negotiate fairer terms where possible.

Term Alignment and Renewal Rights

A frequent issue for retail franchisees is a mismatch between the franchise term and the lease term. For example, your franchise may run for five (5) years, but your lease may only run for three (3) — leaving you unable to operate the business for the full term.

Always ensure:

• Lease and franchise terms align, including options to renew

• You understand whether renewal requires payment of additional fees or refurbishment

Greyson Legal are familiar with both franchising and leasing and can help coordinate these timing issues early to avoid operational or financial disruption.

Franchising Code of Conduct Compliance

Both franchisors and franchisees on the Gold Coast are bound by the Franchising Code of Conduct, a mandatory industry code under the Competition and Consumer Act 2010 (Cth).

This Code governs:

• Pre-contract disclosure obligations

• Good faith dealings

• Marketing fund transparency

• Cooling-off rights and dispute resolution

Before signing, make sure the franchisor has provided the proposed franchise agreement, a current Disclosure Document,nd a copy of the Code. We can verify compliance and ensure that all mandatory timeframes (such as the 14-day disclosure period) are met.

Managing Franchise and Lease Disputes

Disputes in shopping centre franchises often arise over:

• Rent increases or lease renewals

• Relocation or redevelopment

• Fit-out requirements

• Franchise performance obligations or termination

The Retail Shop Leases Act provides a dispute resolution pathway through the Office of the Queensland Small Business Commissioner, while franchise disputes can be handled under the Franchising Code’s mediation (or arbitration) provisions.

Greyson Legal can assist in negotiating resolutions, drafting settlement deeds, or guiding you in formal mediation if needed.

Why Legal Advice Matters Before You Sign

Retail and shopping centre franchises on the Gold Coast can be lucrative — but the legal frameworks surrounding them are complex. A single oversight in your lease or franchise agreement can lead to costly disputes or lost investment.

At Greyson Legal, we specialise in franchise and leasing law, helping Gold Coast clients navigate disclosure, negotiation, and compliance from start to finish. Our goal is to ensure your agreements are clear, compliant, and commercially sound.

Need Legal Advice for a Retail or Shopping Centre Franchise on the Gold Coast?

Before you sign your franchise or lease documents, speak with Greyson Legal | Franchise Lawyers Gold Coast. We’ll review your agreements, explain your obligations, and help you negotiate better terms to protect your investment.

📞 Call: 0411 248 885📧 Email: mail@greysonlegal.com🌐 Visit: https://www.greysonlegal.com/franchise-lawyers-gold-coast