Can You Own Multiple Franchises?

Thinking about owning more than one franchise location - or even buying into different brands? It’s a common way to scale faster, diversify revenue and build a stronger asset base in Australia.

The short answer is yes, you can own multiple franchises. The longer answer is that the right legal setup and careful review of your franchise agreements will make or break your growth plans.

In this guide, we’ll unpack your options (multi-unit, area development and master franchise), the key legal issues to watch, and a practical roadmap to expanding with confidence.

What Does “Owning Multiple Franchises” Actually Mean?

“Multiple franchises” can look a few different ways, and the structure you choose will affect your legal obligations and risk profile.

Multi-Unit Franchisee

You operate two or more outlets of the same brand. Often, you’ll sign separate franchise agreements for each store, with consistent fees and operational standards.

Area Developer

You agree to open a set number of outlets in a defined territory over a period of time (for example, five stores in Greater Brisbane in three years). Your agreement usually includes milestones and development rights - and penalties if timelines are missed.

Master Franchisee (or Sub-Franchisor)

You acquire the rights to develop a territory and the ability to sub-franchise to other operators. This adds an additional layer of regulatory obligations (including disclosure), training and support duties - essentially, you become a mini-franchisor within your region.

Whichever pathway you’re considering, it’s crucial to review each Franchise Agreement and related documents carefully, because small clauses can have big consequences when you scale.

Can You Own Franchises From Different Brands?

Often, yes - but it depends on your contracts.

Some brands include non-compete or non-solicitation clauses that restrict you from operating competing concepts or joining rival networks. Others may prohibit you from owning any other franchise brand without written consent, even if it’s not a direct competitor.

Pay close attention to definitions like “Competing Business”, the scope and duration of restraint, and whether the clause applies to you personally, your company, and related entities. Where restrictive covenants feel too broad, seek tailored Restraint of Trade Advice before you sign.

It’s also common to see “right of first refusal” or approval processes for additional stores. If you’re planning a multi-brand portfolio, negotiate the flexibility you need upfront and keep a clear paper trail of consents.

What Are the Key Legal Issues When Scaling to Multiple Units?

Expanding multiplies your opportunities - and your risk. Here are the main legal areas to consider before you add more locations or brands.

1) Structure and Asset Protection

Many multi-unit operators use separate companies to hold each store’s assets and liabilities, with a parent entity for management and branding. This can help quarantine risk if one unit underperforms.

• Company structure: If you’re still operating as a sole trader or partnership, consider a dedicated entity for growth. Our team can assist with Company Set Up and the right governance documents for your group.
• Co-owners and investors: If you’re scaling with partners, a Shareholders Agreement is essential to set clear decision-making, profit-sharing and exit terms.

2) Franchise Agreement Terms That Matter More at Scale

When you run just one store, you might live with a few unfavourable clauses. With multiple locations, those terms compound.

• Territory and exclusivity: Clarify whether protections are exclusive, what triggers loss of exclusivity, and how new sites are allocated.
• Development obligations: For area development, map your milestones, extension rights and any liquidated damages for delays.
• Fees and rebates: Small fee differences add up across multiple units. Confirm marketing levies, technology fees, training costs and supplier rebates.
• Cross-default: Many agreements allow a default in one store to jeopardise all your stores. Understand your cure periods and negotiation levers.
• Transfer and renewal: Ensure you have a clear path to sell or restructure, and check conditions for renewal across all units.

A thorough Franchise Agreement review can help you flag and negotiate these issues before you commit.

3) Premises and Leasing

Each outlet usually requires its own commercial lease, often with the franchisor as head tenant or as a party with step-in rights. Align lease terms (option periods, rent review, make good) with your franchise term so you’re not left with mismatched dates or unexpected costs.

Document franchisor and franchisee responsibilities for fitout, signage, repairs and landlord approvals. Where the franchisor is the head tenant and you sublease, ensure the two agreements are consistent and you have transparency over rent and outgoings.

4) Employment and Workplace Compliance

Growing to multiple locations means more staff. You’ll need consistent employment contracts, award compliance, rosters and policies across all sites.

• Use well-drafted Employment Contracts for full-time and part-time staff, and ensure your casual arrangements comply with conversion and roster rules.
• Set a practical staff handbook with core policies (work health and safety, grievances, leave, social media and device use).
• Maintain payroll accuracy across locations, including superannuation, penalty rates and overtime under the relevant award.

5) Customer Law and Data

Every outlet must comply with the Australian Consumer Law (ACL) - particularly in relation to refunds, guarantees and advertising. If you collect customer data (loyalty programs, online ordering, Wi-Fi sign-ups), you’ll also need a clear Privacy Policy and processes to handle personal information consistently across stores.

6) Supply and IP

Franchise systems typically control suppliers and brand use. As you scale, confirm how purchasing works, what happens if there are supply shortages, and how you may use the franchisor’s trade marks and marketing assets at the local level. Stick to brand guidelines to avoid IP breaches and potential termination risk.

Do I Need Different Companies for Each Store?

You don’t have to, but many multi-unit franchisees do for risk management. Separate entities can help contain liabilities (for example, a lease dispute in Store A doesn’t automatically spill into Store B). It can also simplify a sale if you want to divest one site later.

However, separate entities come with more admin - extra bank accounts, payroll, BAS and ASIC lodgements. Some franchisors also prefer you to operate all stores under a single entity for simplicity.

There’s no one-size-fits-all answer. Talk to your accountant and consider legal guidance when deciding on structure - especially if you’ll be signing multiple long-term agreements and leases. If you’re forming new entities for growth, we can handle the Company Set Up and governance documents so everything aligns with your franchise commitments.

How To Build A Multi-Unit Franchise Plan (Step-By-Step)

Step 1: Confirm Your Growth Rights And Constraints

Start by mapping all the permissions and limits in your current agreement. Can you open more stores? Is there a cap per territory? Are there development options or rights of first refusal? Identify any consent steps and minimum performance standards you need to meet first.

Step 2: Choose Your Ownership Structure

Decide whether to operate new outlets under your current entity, a new entity for each location, or a holding company with subsidiaries. Align this decision with tax advice, asset protection and your exit strategy. If you have co-owners, put a Shareholders Agreement in place before money changes hands.

Step 3: Review And Negotiate Each Franchise Agreement

Don’t assume the second or third agreement will be identical. Plan for variations to development schedules, cross-default, and territory. Engage a Franchise Lawyer early so you have the right clauses to support multi-unit growth.

Step 4: Align Your Leasing And Fitout Timeline

Secure sites and leases that fit your development schedule and ensure franchise term, options and make good obligations align with the lease. Document responsibilities for fitout, handover and landlord approvals clearly between you and the franchisor.

Step 5: Standardise Your People And Policies

Roll out consistent Employment Contracts, onboarding checklists and rosters. Invest in manager training across sites to avoid compliance gaps - Fair Work breaches multiply quickly when you scale.

Step 6: Systemise Customer, Privacy And Marketing Compliance

Apply a single set of customer service rules for refunds and guarantees, and maintain a current Privacy Policy that covers in-store and online collection (including loyalty programs and delivery platforms). Keep records of staff training and customer-facing policies.

Step 7: Plan Finance And Cashflow Conservatively

Factor in initial fees, fitout costs, working capital, levies and tech subscriptions for each new site. Confirm how fees scale with revenue and check whether revenue targets are unit-specific or averaged across your portfolio (it makes a big difference to default risk).

Thinking About Becoming A Master Franchisee?

Stepping up to master franchisee or sub-franchisor is a bigger shift than adding another store. You’ll likely take on training, support, marketing and compliance responsibilities, and you’ll need robust documentation and disclosure processes of your own.

This level typically requires sophisticated contracts with sub-franchisees, clear territory rules, dispute processes and accurate financial records for marketing funds. You may also need to prepare and maintain a compliant disclosure pack in line with the Franchising Code of Conduct. If you’re exploring this pathway, our team can help you prepare and update the required pack via our Franchise Disclosure Document Update service and ensure your agreements are fit for purpose.

What Legal Documents Will I Need As A Multi-Unit Franchisee?

• Franchise Agreement(s): Your core agreement for each unit, setting fees, territory, standards and renewal/termination. Get each one reviewed before you sign via our Franchise Agreement service.
• Company Constitution (if you incorporate): Rules for how your company is run and how decisions are made by directors and shareholders.
• Shareholders Agreement: If you have co-owners, this sets ownership, decision-making, profit distribution and exit terms, preventing disputes during growth. See Shareholders Agreement.
• Employment Agreements & Policies: Clear contracts and a staff handbook to cover hours, pay, confidentiality, IP and conduct across all stores. Start with an Employment Contract suite.
• Privacy Policy: If you collect any personal information (including loyalty sign-ups or online orders), publish and follow a compliant Privacy Policy.
• Commercial Lease Documents: Heads of agreement, lease, incentives and disclosure for each site - aligned with your franchise term and handover obligations.
• Supplier/Service Agreements (if permitted): Where you’re allowed to engage local suppliers (cleaning, maintenance, delivery), use written terms to manage liability and performance.

Not every business needs every document on day one, but most multi-unit franchisees will need several of the above - ideally tailored to the brand’s system and your structure.

Common Pitfalls To Avoid

• Cross-default traps: Letting a minor breach in one store trigger default across your portfolio. Negotiate cure periods and proportional remedies where possible.
• Misaligned lease and franchise terms: Ending up with a lease that outlasts the franchise term (or vice versa) can create costly gaps.
• Underestimating staffing obligations: Scaling without standardised contracts, award compliance and training risks Fair Work issues and brand damage.
• Restrictive restraints: Agreeing to broad non-competes that block multi-brand ownership or future exits. Seek early Restraint of Trade Advice if clauses are wide.
• Inconsistent customer and privacy practices: Different refund or data practices per store invite ACL and privacy risks.

Key Takeaways

• You can own multiple franchises in Australia - as a multi-unit operator, area developer or master franchisee - but each path carries distinct legal obligations.
• Your franchise agreements drive what you can do; clauses on territory, development, cross-default, fees and restraints are critical when you scale.
• Choose a structure that balances asset protection with admin load; many owners incorporate and use a Shareholders Agreement when growing with partners.
• Align lease terms to franchise terms for every site and standardise employment, privacy and customer policies across all locations.
• If you’re stepping into sub-franchising, expect extra disclosure and compliance duties and ensure your documentation is master-franchise ready.
• Get key contracts reviewed by a Franchise Lawyer before you commit - small clauses can have big impacts across multiple stores.

If you’d like a consultation on owning multiple franchises or reviewing your agreements, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.