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Franchising your business is a common decision for many business owners (and an exciting one, too!). So why do businesses decide to franchise?
Franchising is a fantastic opportunity to enhance your business’s visibility and market reach. Having multiple branches in various locations not only increases customer access but also significantly boosts profit‑making potential in today’s competitive 2025 landscape.
Of course, there are several crucial documents you need to have in place. Since franchising is a major step for your business, it’s essential that key details and processes are clearly set out in writing to protect you in case things go awry.
One of your key considerations should be a Franchise Grant Process, which is an essential part of selling your franchise to potential buyers. This process allows you to effectively manage enquiries from prospective franchisees while ensuring your brand standards are maintained.
In this article, we’ll break down the key things you need to know about a Franchise Grant Process and how it fits into your overall franchising framework.
If you’re thinking of franchising your business, it’s worth understanding how a Franchise Grant Process will work for you in today’s dynamic 2025 market.
What Is Franchising?
Franchising involves permitting another party-the franchisee-to operate under your business name by opening a separate branch. In essence, you allow them to leverage your established brand, operational systems, and intellectual property to run their own business.
The franchisee gains the right to use your branding and IP, along with your marketing strategies and internal operating procedures, which means they benefit from a ready-made business model rather than starting from scratch.
Usually, the franchisee pays a franchise fee in return for using these assets, operating systems, training services, and basic marketing materials. In some cases, they may also bear legal costs associated with preparing and negotiating the Franchise Agreement. For further insights into fee structures, our guide on franchise royalties is an excellent resource.
Your Franchise Agreement should comprehensively cover the duration of your franchise relationship-commonly known as the franchise term. In 2025, if a franchisee elects to extend their term, they are generally required to provide six months’ notice, and you will need to update your Disclosure Document in accordance with current regulations.
Once all agreements are finalised, the franchisee can proceed to open a business using your brand in a new location, effectively growing your footprint.
What Are The Benefits Of Being A Franchisor?
Franchising your business provides a strategic means to expand your brand and diversify its presence. With multiple outlets established across different regions, your market reach increases dramatically-an advantage that’s particularly significant in 2025’s competitive environment.
When you start a franchise, you are essentially delegating day‑to‑day operational responsibilities to your franchisees, allowing you to focus on strategic, long‑term growth. This approach not only maximises profits but also ensures that your core business continues to flourish while your brand expands. It also complements your overall business set‑up strategy by ensuring all legal foundations are sound.
You may have also heard of franchise royalties. Since franchisees benefit from your established IP and branding continuously, it’s only fair that you receive ongoing compensation-often covering administration, advertising, and technical support costs, as detailed in your Franchise Agreement.
If you’ve invested significant effort in building your brand and reputation, these royalties serve as vital recognition for your hard work and continued investment in your business’s success.
At What Point Should I Look Into Franchising?
In 2025, if your business is well-established, financially stable, and shows consistent market demand in multiple regions, you may be ready to franchise. Carefully consider areas such as marketing, robust networking capabilities, the logistics of receiving franchise payments, and covering legal costs associated with these processes.
Before you commit, it’s essential to closely assess your current resources and operational strengths. Evaluate how your business model fits with franchising and whether you have the necessary capacity to support new ventures. Key considerations include:
- How will I conduct my marketing activities?
- Establishing a strong networking plan.
- How will I receive payments from franchisees?
- Strategies to cover legal costs.
- Ensuring robust product demand and service consistency.
If you decide to franchise your business, our experienced lawyers can assist you with:
- Drafting a comprehensive Franchise Agreement
- Establishing fair Franchise Royalties
- Advice on franchising costs
- Ensuring compliance with the Franchising Code of Conduct
- Preparing an up‑to‑date Disclosure Document
- Setting up a streamlined Franchise Grant Process
- Guidance on extending your franchise term if necessary.
Having a robust Franchise Grant Process is critical as you can expect a high volume of enquiries from potential franchisees eager to partner with your brand. This process ensures that you can effectively filter, assess, and manage candidate applications, setting the stage for successful franchise growth.
So, what might this process look like for your business? Let’s explore the key components of a Franchise Grant Process next.
What Is A Franchise Grant Process?
In 2025, as you embark on the franchising journey, you may experience a surge of interest from prospective buyers keen to adopt your successful business model. Many will have questions about fees, prime locations, branding strategies, and ownership details.
A grant process provides a structured method for managing these enquiries. It ensures you only progress with candidates who meet your clearly defined criteria while enabling transparent discussions about expectations and obligations. This approach not only protects your business but also builds trust with potential franchisees.
This transparency and structured vetting help you make well-informed decisions as you select the right partners for expanding your brand.
What Does A Franchise Grant Process Involve?
While every business’s approach to franchising is unique, a typical Franchise Grant Process generally involves three main steps:
- Picking the right franchisee
- Sorting out your franchise documents
- Managing the cooling‑off period
Picking The Right Franchisee
Initially, you should engage in detailed discussions with potential franchisees to establish what the arrangement entails. Start by defining the ideal franchisee profile – someone who is not only financially robust but also aligns with your brand vision and values.
Using interviews and questionnaires can be effective ways to assess whether candidates are capable of managing and growing one of your branches successfully.
Sorting Out Your Franchise Documents
Once you’ve identified the perfect candidate, the next step is to prepare all the necessary documentation to formalise the grant process. This ensures that every key matter is set out in writing, protecting your business if issues arise later.
Because laws around franchising can be complex, having a tailored approach to your documents is critical. You’ll need to draft the following:
- Non‑Disclosure Agreement: Useful in the early stages to ensure confidential information remains protected.
- Franchise Agreement: The primary document setting out all details of your arrangement. This should clearly outline roles, responsibilities, and terms for both parties.
- Disclosure Document: Provides a transparent summary of all critical information about your business, helping potential franchisees make informed decisions.
In addition, you must provide prospective franchisees with an Information Statement (available from the Australian Competition and Consumer Commission) and a copy of the Franchising Code of Conduct. Always ensure you are using the latest versions in line with 2025 requirements.
The Code is the principal legislation governing franchises in Australia. It details the rights and obligations of both franchisors and franchisees, as well as the processes for scenarios like selling, buying, or leaving a franchise.
Cooling-Off Periods For Franchisees
Under the Franchising Code, a standard seven‑day cooling‑off period is provided in 2025. This period allows franchisees to reconsider their decision without penalty.
If a franchisee exercises this right, they are entitled to a full refund of their franchise fee, which you, as the franchisor, must process within 14 days to avoid penalties.
How Can I Get A Franchise Grant Process?
Sprintlaw offers a comprehensive Franchise Grant Package to help you set up a robust process for managing enquiries from prospective buyers. Recognising that each business is unique, we tailor our services to meet your specific needs in today’s evolving market.
- Preparing all the necessary documents for the Franchise Grant
- Issuing the Franchise Grant to the chosen prospective franchisee
- Negotiating any required amendments to the documents
- Issuing the final version of the Franchise Grant documents for execution
- Organising and facilitating the execution of the documents to ensure everything is completed correctly
Our lawyers work closely with you to design a process that not only minimises legal risk but also streamlines your operations. With our expert guidance and up‑to‑date knowledge of franchising regulations in 2025, you can confidently expand your business and secure fruitful partnerships. We remain committed to helping you stay compliant with recent updates, so you never miss a beat.
Need Help?
Franchising can be an exciting next step for your business, and ensuring a smooth start is crucial. It’s a good idea to chat with our friendly lawyers about our fixed‑fee franchising legal packages. If you would like a consultation regarding your franchising options, please call us on 1800 730 617 or email team@sprintlaw.com.au for a free, no‑obligations chat. We’re here to help support your growth every step of the way in 2025.
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