A legal audit for business models that may be edging into franchising

This audit is commonly used by businesses expanding through licence models, branded operators, affiliates, dealership-style arrangements, management models or similar structures where another party trades with some level of brand connection or system control. It is particularly useful when the model has grown over time and the documents no longer tell the full story. Hospitality, fitness, beauty, retail and service businesses often run into this issue, but the audit can also help any business where fees, branding and operational requirements are all part of the commercial setup.

The concern often comes from a combination of features rather than one clause on its own. Common indicators include permission to use a brand, ongoing fees or royalties, prescribed systems, mandatory suppliers, training requirements, marketing contributions, territory arrangements and rights to direct how the operator runs the business. Labels can be misleading. A licence, distribution or services arrangement can still raise franchising issues if the practical relationship points that way. That is why the audit looks at the full model, not just the title of the agreement.

You receive a legal review of the material provided and a written report identifying the main accidental franchising risk areas we can see from the structure and documents. The report usually addresses the features driving concern, why they matter, and what legal or commercial changes may be worth considering next. Depending on the setup, that might include revising fee mechanics, changing control settings, reworking brand permissions or obtaining more detailed franchise-specific advice before further rollout. It is a diagnostic service rather than a full implementation project.

It looks at both. Contract wording is important, but accidental franchising questions often turn on the real operating model as much as the paperwork. For example, a document may look relatively light on control, while the actual business relationship involves mandatory systems, approval rights or ongoing operational direction. We review the agreements you have, but we also consider the commercial structure and how the arrangement functions on the ground. That broader view is one reason this service differs from a narrower one-off consultation.

Not automatically. The audit identifies the issues and gives you a basis for deciding what should happen next, but document rewrites, restructuring work and broader franchise compliance projects are separate pieces of work. Some businesses only need targeted amendments to one or two agreements. Others may need a more substantial rethink of fees, controls, manuals or rollout plans before signing more operators. Keeping the audit separate helps you understand the problem first, then decide whether limited changes or a broader restructure is the better path.

As an online law firm, we eliminate the headaches of paying us by the hour and finding time to meet with a lawyer in person. We charge a fixed fee, with upfront quotes and transparent pricing, and communicate via phone, email and video chat - whichever suits you! You'll be guided through our process by our expert lawyers, who are Australian-qualified and specialise in technology, intellectual property, contract drafting, corporate and commercial law.

At Sprintlaw, our pricing is transparent and designed for startups and small businesses. Many one-off legal services, including document drafting and reviews, are provided for a fixed fee with an upfront quote before you proceed.

Prices typically range from $250 to $2,500 AUD depending on the complexity and scope of the work. For ongoing support, Sprintlaw Memberships include options such as legal templates, consultations, a legal helpline and credits for services.

If your project is larger or more complex, we will provide a tailored quote after understanding what you need.

Our law firm operates completely online, which means we can help you wherever you are in Australia. We work at The Commons Central - a cool co-working space in Chippendale, Sydney - but our lawyers often work flexibly across various locations.

Our lawyers also work from co-working spaces and home offices in Sydney, Melbourne, Brisbane, Adelaide and Perth, so clients can get help online without needing to meet in person.