Starting a franchise system in Australia can occur in a number of ways. It may be home grown – an existing business in Australia may wish to expand using a franchise model. Alternatively an overseas brand may wish to enter Australia as a new market.

Overseas brands can enter the Australian market themselves. They can be the franchisor and can consider using their own employees or contract area developers to help them expand here. Alternatively, it is common for overseas brands to grant master franchises for the Australian market. There are a range of factors for this including the tyranny of distance for them operating a business in Australia.

When negotiating a country master franchise agreement or in establishing a franchise network in Australia there are key provisions that need to be document to protect all parties concerned.

Intellectual property, development targets and end of term arrangements need to be comprehensively considered.