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Selling Your Franchise in Brisbane – Legal Steps for a Smooth Exit

  • Writer: Raymond Duffy
    Raymond Duffy
  • Nov 7, 2025
  • 3 min read

Introduction

Deciding to sell your franchise can be both exciting and challenging. Whether you’re moving on to a new business venture or planning to retire, it’s essential to manage the sale correctly — both legally and commercially.


In Brisbane, franchise sales involve more than just finding a buyer. You must comply with your franchise agreement and any lessor or landlord requirements if your franchise operates from leased premises.


Working with an experienced franchise lawyer in Brisbane, such as Greyson Legal, ensures your exit is handled smoothly, efficiently, and with full compliance.



Review Your Franchise Agreement

Your franchise agreement sets out the conditions under which you can sell (or “assign”) your franchise.


Most agreements require:

  • The franchisor’s written consent before the sale;

  • The buyer (assignee) to meet the franchisor’s approval criteria; and

  • You, the outgoing franchisee, to satisfy certain conditions before assignment (such as paying a transfer fee).


Greyson Legal can review your franchise agreement to identify any restrictions, pre-sale obligations, or notice periods you must observe before proceeding with a sale.


Notify the Franchisor and Obtain Consent

The Franchising Code of Conduct requires franchisors to act reasonably when considering a franchise transfer or sale.You must provide the franchisor with written notice of your intention to sell, along with relevant information about the proposed buyer.


The franchisor will then:

  • Assess the buyer’s qualifications and financial capability;

  • Provide an updated disclosure document and franchise agreement to the buyer; and

  • Issue written consent (or refusal) within the Code’s required timeframe.


The franchisor may also have a first right of refusal to purchase the franchised business.


Greyson Legal Brisbane Franchise Lawyers ensure that your notice, timing, and supporting documents meet all legal requirements — helping prevent unnecessary delays or disputes.


Prepare or Review Legal Documents for the Sale

Several legal documents are typically required to finalise a franchise sale, including:

  • Business Sale Agreement (in respect of the sale of equipment and stock), etc;

  • Deed of Assignment (transferring rights and obligations to the buyer);

  • Deed of Release and Termination (to release you (the seller) from ongoing liability, subject to conditions of the franchisor.


Greyson Legal can assist with these documents to ensure your rights are protected and that your sale aligns with the Franchising Code of Conduct, franchise agreement and contract law.


Address the Lease or Premises Arrangements

If your franchise operates from a leased property — for example, in a Brisbane shopping centre or retail strip — the lease must also be assigned or transferred to the buyer.


This process often requires:

  • Landlord consent;

  • Updated retail lease disclosure statements;

  • A new or transferred bank guarantee; and

  • Compliance with Queensland’s Retail Shop Leases Act 1994 (Qld) - if retail.


Greyson Legal Brisbane Franchise Lawyers can liaise with both the franchisor and the landlord to ensure all parties approve the transfer and that timing of lease and franchise assignment align.


Conduct Due Diligence and Settlement

Both you and the buyer will undergo due diligence before finalising the transaction.For sellers, this includes:

  • Providing accurate business and financial information;

  • Ensuring all franchise fees and marketing contributions are up to date;

  • Transferring employees (if applicable);

  • etc.


Once due diligence is complete, Greyson Legal will manage the settlement process, ensuring all legal documents are signed, funds are transferred securely, and the franchisor’s approval is formally recorded.


Seek a Release from Future Liability

One of the most important — and often overlooked — steps when selling your franchise is obtaining a release from future liability.


Without a Deed of Release (or similar), you could remain responsible for the buyer’s future defaults under the franchise agreement or lease, subject to statutory requirements.


Greyson Legal can negotiate with the franchisor and lessor to secure formal releases, protecting you from ongoing obligations after settlement.


Why Legal Guidance Matters

Selling a franchise isn’t the same as selling an independent business.There are additional regulatory, contractual, and timing issues unique to the franchising sector.


At Greyson Legal, we guide Brisbane franchisees through every stage of the sale process — from the initial review and consent application to final settlement.Our goal is to deliver a smooth legal exit that maximises your sale value while minimising risk.


Need Help Selling Your Franchise in Brisbane?

If you’re planning to sell your franchise, contact Greyson Legal | Franchise Lawyers Brisbane for experienced legal assistance.We’ll help you prepare your documents, coordinate with the franchisor and landlord, and ensure your exit is smooth, compliant, and stress-free.


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