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You don’t need to be one of the established giants to successfully start your own fast food business. If you’ve always dreamed of launching your own fast food outlet but aren’t sure how to begin – or whether it’s even achievable – you’re in the right place.
As a new player in the market, you absolutely can open your own fast food restaurant. Whether your goal is to maintain a local, community-focused eatery or expand into the next big franchise, the direction and scale of your business are entirely up to you.
Whichever path you choose, we’re here to help you navigate the legal requirements so you can focus on building your dream.
What Can My Fast Food Business Sell?
Fast food is characterised by its quick service, convenience, and affordability. Unlike dining at a restaurant or café, where customers typically expect longer wait times and pay extra for a full-service experience, fast food is designed to be served promptly, often through easily accessible channels such as drive-thru or takeaway services, and at a lower cost.
When running a fast food restaurant, you have plenty of flexibility in deciding what you can sell, as long as your menu items meet these basic criteria. You probably won’t find many fast food restaurants preparing lobster bisque for their customers; instead, the staples of fast food tend to be items like burgers, fries, pizza, sandwiches, and wraps – foods that can be prepared quickly, efficiently, and consistently.
It’s a smart move to create a detailed business plan early on. Your plan should include matters such as:
- Your proposed menu and pricing
- The ingredients required
- Reliable suppliers
- Operational processes and logistics
- Marketing strategies
- Legal considerations
- Long-term and short-term goals
Starting a fast food business isn’t something to approach on-the-fly. Having a clear plan in place ensures you’re organised, focused, and prepared for success.
How To Start A Small Fast Food Business
Once you’ve figured out the logistics of your fast food business, the next essential step is registering your business. In Australia, registration is legally required before starting any business operations. This process marks your first official step towards launching your venture.
When choosing a business structure for your fast food business, there are several options. The most common structures are Sole Trader, Partnership, and Company. Here’s a detailed breakdown to help you decide:
Sole Trader
- Simple Registration: To register as a sole trader, you’ll need to obtain an Australian Business Number (ABN) and, if you’re trading under a name other than your own, register your business name.
- Minimal Compliance: Sole traders enjoy fewer regulatory and reporting obligations compared to other structures, with no mandatory annual audits or hefty administrative fees.
- Personal Liability: Your business isn’t a separate legal entity; it’s legally tied to you personally. This means you’re fully liable for any debts or legal obligations the business incurs, potentially putting your personal assets at risk.
- Limited Growth Potential: Due to its structure, expanding or securing investment can be challenging for sole traders.
Partnership
- Easy to Set Up: Like sole traders, registering a partnership is relatively straightforward. Partners will require an ABN and business name registration.
- Partnership Agreement: It’s a good idea to have a clear partnership agreement outlining roles, responsibilities, and how profits or losses are shared.
- Shared Liability: Partners jointly share responsibility for debts and legal actions against the business. Personal assets of each partner can be at risk.
- Flexible Growth: Easier access to capital compared to a sole trader, as multiple partners can contribute resources and expertise.
Company
- Complex Registration: Registering a company involves obtaining an ABN, registering the business name, and formally setting up with the Australian Securities and Investments Commission (ASIC).
- Higher Compliance Requirements: Companies face stricter compliance obligations, including regular reporting to ASIC, mandatory financial statements, and annual fees.
- Limited Liability Protection: Companies exist as separate legal entities, meaning owners (shareholders) have limited liability. Personal assets are typically protected from business debts and liabilities.
- Greater Potential for Growth: Easier access to funding, ability to issue shares, and increased opportunities for growth and expansion due to perceived credibility and structure.
Which Business Structure Is Right For My Fast Food Business?
Choosing the right legal structure for your fast food business is an important decision, as it will lay the foundation for your entire operation. Because this choice significantly affects your business’s future, it’s wise to seek tailored advice from a legal expert who can assess your unique circumstances.
Generally, a company structure tends to be the best choice for serious, long-term business ventures, providing clear advantages such as limited liability, greater access to capital, and potential for growth. However, other structures – such as a trust structure or even a dual-company structure – may better suit your specific situation and goals.
Speaking with a legal expert not only ensures you make a well-informed decision but can also simplify the registration and compliance processes.
Do I Need Any Permits To Start A Fast Food Business?
There’s a good chance you will need permits and licences to start your fast food business; however, this will depend on the specific laws and regulations that apply to your business. Let’s explore these regulations – and some other relevant ones – in more detail below.
Food Business Licence
A Food Business Licence is typically issued by your local council. You’ll need to review your council’s regulations to determine:
- Whether your fast food business requires a licence;
- What type of food business licence applies to your operations; and
- The specific qualifications or documentation required for approval.
Make sure your business complies with all relevant food safety standards, particularly those outlined by Food Standards Australia New Zealand (FSANZ). You’ll need to submit the correct forms and ensure your business practices align with health and hygiene requirements.
In addition to your food licence, you may also need to comply with other local laws and permits, including:
- Waste management and disposal regulations
- Noise control requirements
- Zoning laws (especially if you’re operating from a non-commercial property)
- Restrictions on opening hours
- Premises licence or alcohol licence (if applicable)
Keeping on top of these obligations is essential to ensure smooth and lawful business operations.
Intellectual Property Law
In the fast food industry, your brand identity is closely tied to your customer experience. From your logo and business name to your menu names and packaging design, protecting your brand from imitation is crucial.
To protect your intellectual property:
- Register your trade marks for names, logos, slogans, and other brand elements.
- Use confidentiality clauses or Non-Disclosure Agreements (NDAs) in contracts with staff, suppliers, or consultants – especially if you’re developing unique recipes or proprietary processes.
Establishing and securing your brand early can prevent costly disputes down the track and help build lasting customer loyalty.
Australian Consumer Law (ACL)
All businesses operating in Australia must comply with the Australian Consumer Law (ACL). This legislation governs matters such as:
- Product and service quality
- Fair marketing and advertising practices
- Consumer guarantees and refunds
- Transparency around pricing and offers
Fast food businesses must ensure that their advertising is truthful, pricing is clear, and products are safe and of acceptable quality. Breaching the ACL can result in fines, reputational damage, and legal action.
Employment Law
If you’re hiring staff – whether it’s for food prep, service, or management, you’ll need to comply with Australian employment laws. This includes:
- Providing clear, legally compliant employment contracts
- Paying at or above the relevant award wage
- Adhering to rules around workplace health and safety (WHS)
- Complying with entitlements like leave, superannuation, and breaks
Missteps in employment law can be costly, so it’s a good idea to get your contracts and HR processes reviewed by a legal expert before hiring.
Privacy Laws
If your fast food business collects any customer information, such as for online orders, delivery services, loyalty programs, or marketing, you’ll need to comply with Australian privacy laws.
The Privacy Act 1988 (Cth) sets out how businesses must handle personal information. Even if you’re a small business, it’s good practice to follow these laws to build customer trust and avoid potential issues.
Here’s what you should keep in mind:
- Be transparent about data collection: Let customers know what personal information you’re collecting (e.g. names, contact details, delivery addresses) and why.
- Have a privacy policy: This should clearly explain how customer data is collected, stored, used, and disclosed. Make sure it’s easy for customers to access – especially if you have a website or app.
- Store data securely: Whether you keep customer information digitally or in hard copy, you’re responsible for keeping it safe from unauthorised access or breaches.
- Give customers access to their data: If a customer asks to see what information you have about them, you must provide it (with limited exceptions).
Even if you’re not legally required to comply with the Privacy Act due to business size, adopting privacy best practices is a smart move, especially as your business grows or if you use third-party tools to process orders and payments.
What About Buying a Fast Food Franchise?
We know we said fast food isn’t just for the big players, but starting your own fast food business from scratch can be a big commitment, especially if you’re not quite ready to take it all on yourself. That doesn’t mean your dream of running a fast food outlet is over. You always have the option of buying into a fast food franchise.
Franchising can be a great way to enter the industry with a proven business model, brand recognition, and operational support. However, becoming a franchisee comes with its own legal obligations and it’s essential to get the right legal advice before signing anything.
Even though franchise regulations in Australia are designed to protect franchisees, having a legal expert by your side helps ensure the deal actually works in your favour. They can also help you avoid terms that might limit your flexibility or increase your risk.
A few legal matters you may need help with include:
- Reviewing franchise documents (such as the Franchise Agreement and Disclosure Document)
- Negotiating more favourable terms before you sign the agreement
- Understanding your rights and obligations under the Franchising Code of Conduct
- Clarifying fees, royalties, and renewal conditions
- Assessing any personal guarantees or restrictions (like non-compete clauses)
- Advising on dispute resolution options if issues arise later on
If you’re considering a franchise model, speaking with a lawyer who understands franchise law can make the entire process smoother and protect your investment from the start.
What Legal Documents Do I Need To Start A Fast Food Business?
To keep your fast food business protected and running smoothly, it’s essential to have professionally drafted legal agreements in place. These documents help clarify relationships, minimise risks, and ensure your business operates within the law.
- Supply Agreement
- Employment Agreement
- Privacy Policy
- Non-Disclosure Agreement (NDA)
- Commercial Lease Agreement
- Workplace Policy
The stronger your legal agreements are, the better protected your fast food business will be. That’s why it’s important to invest wisely in getting them right. Speak to a legal expert about the exact agreements your fast food business needs, and let them help you draft tailored documents. That way, you can be confident they’re working to your advantage and supporting your long-term success.
Key Takeaways
When starting your fast food business, be sure to take the legal factors into consideration. To summarise what we’ve discussed:
- You must register your business and choose the right legal structure (sole trader, partnership, or company), each carrying different legal responsibilities and liability risks.
- Most fast food businesses require a Food Business Licence from the local council, along with compliance with zoning laws, waste management, opening hours, and other local regulations.
- Protect your brand with proper intellectual property measures, such as registering trade marks and using NDAs to safeguard recipes, logos, and business strategies.
- Comply with the Australian Consumer Law (ACL), which governs product quality, fair marketing, and customer rights – including refunds and guarantees.
- Employment law compliance is essential – ensure staff are hired under valid contracts, paid the correct award wage, and protected under workplace health and safety laws.
- If you collect customer data (e.g. for online orders or loyalty programs), you must meet privacy obligations under the Privacy Act, including having a clear privacy policy.
- Considering a franchise? Get legal advice before signing any franchise documents to ensure your rights are protected and the agreement works in your favour.
If you would like a consultation on starting a fast food business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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