The franchisor compliance manual

Your franchise agreement

Freedom of association

You must not restrict or impair the freedom of existing or prospective franchisees to form an association or their ability to associate with one another for a lawful purpose.

General releases and waivers

You must not require a franchisee to sign a general release of the franchisor from liability towards the franchisee.

In addition, a franchise agreement must not contain, or require a franchisee to sign a waiver of any verbal or written representation that you have made.4

Jurisdiction for settling disputes5

Your franchise agreement must not require mediation to be conducted, or actions or proceedings to be brought outside of the State or Territory of the franchisee, or any jurisdiction outside Australia.

If a franchise agreement contains such a clause, the clause is of no effect.

Costs of settling disputes6

A franchise agreement must not contain a clause that requires a franchisee to pay the franchisor’s costs to settle a dispute under the agreement.

If a franchise agreement contains such a clause, the clause is of no effect.

Former franchisees’ details

You must not do, or omit to do, anything with the intention of influencing a former franchisee to make a request that their details not be disclosed to prospective franchisees.


4 This prohibition does not apply to agreements entered into prior to 1 March 2008 unless the agreement was subsequently transferred or varied.

5,6 This prohibition does not apply to agreements entered into prior to 1 January 2015 unless the agreement was subsequently transferred or varied

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