Franchise Lawyer vs Franchise Consultant: Who Does What in Australia?
- Whelan Lawyers
- 2 days ago
- 6 min read
Introduction
When entering the franchising world, whether as a franchisor or franchisee, you'll quickly discover that professional guidance is essential. Two key professionals often mentioned are franchise lawyers and franchise consultants, but their roles can seem confusingly similar. Understanding the distinction between a franchise lawyer and franchise consultant is crucial for making informed decisions about your franchising journey.
Many business owners mistakenly believe these professionals provide the same services, leading to costly delays and compliance issues.
In reality, franchise lawyers and consultants serve complementary but distinct functions in the franchising ecosystem. This article will clarify their respective roles, explain when you need each professional, and demonstrate how they work together to ensure your franchise success while maintaining compliance with Australian franchising regulations.
Why this topic matters
The Australian franchising sector contributes over $184 billion to the economy annually, with more than 1,200 franchise systems operating across the country. This substantial industry is governed by the Competition and Consumer Act 2010 (Cth) and the Franchising Code of Conduct, which impose strict legal obligations on franchisors and provide important protections for franchisees.
Given the complex regulatory environment and the significant financial investments involved in franchising, choosing the wrong professional advisor can result in non-compliance penalties, failed franchise launches, or costly legal disputes. The Australian Competition and Consumer Commission (ACCC) regularly takes enforcement action against franchisors who breach their obligations, making proper professional guidance more critical than ever.
Recent changes to the Franchising Code of Conduct, including enhanced disclosure requirements and stronger dispute resolution mechanisms, have further emphasised the importance of understanding exactly what each type of professional brings to your franchise venture.
To read more about changes to the Franchising Code of Conduct, read Missed the 2025 Franchising Deadline? What Franchisors Must Do Now!
What Franchise Lawyers do
Franchise lawyers has deep expertise in the legal aspects of franchising and provide services that only qualified legal practitioners can offer. Their primary responsibilities include:
Legal Documentation and Compliance
Franchise lawyers draft, review, and negotiate franchise agreements, ensuring compliance with the Franchising Code of Conduct. They prepare disclosure documents, area development agreements, assisting with your franchisor profile on the Franchise Disclosure Register and other legal contracts required for franchise operations.
Regulatory Compliance
They ensure franchise systems comply with Australian Consumer Law, competition law, and specific franchising regulations. This includes meeting disclosure obligations, cooling-off periods, and dispute resolution requirements under the Franchising Code of Conduct.
Dispute Resolution and Litigation
When conflicts arise, franchise lawyers represent clients in mediation, arbitration, or court proceedings. They handle breach of contract claims, termination disputes, and regulatory investigations by the ACCC.
Intellectual Property Protection
Franchise lawyers assist with trademark registration, licence agreements, and protecting the franchisor's intellectual property rights across the franchise network.
What Franchise Consultants Do
Franchise consultants focus on the business and operational aspects of franchising, providing strategic guidance and practical implementation support:
Business Strategy and Planning
Consultants develop franchise business models, create growth strategies, and conduct market analysis to determine franchise viability and expansion opportunities.
Operational Systems Development
They design operational manuals, training programs, and standardised procedures that ensure consistency across franchise locations while maximising efficiency and profitability.
Financial Modelling and Analysis
Franchise consultants create financial projections, determine appropriate franchise fees and royalty structures, and analyse unit economics to ensure sustainable franchise models.
Marketing and Brand Development
They develop marketing strategies, create brand guidelines, and establish systems for ongoing marketing support to franchisees.
The Overlap and Distinctions
While both professionals work in franchising, their expertise areas rarely overlap. Franchise lawyers cannot provide business advice outside their legal expertise, and franchise consultants cannot give legal advice or draft legal documents. However, they often collaborate on projects, with consultants developing business strategies and lawyers ensuring legal compliance.
Practical Guidance for Choosing the Right Professional
When You Need a Franchise Lawyer in Australia
Starting a Franchise System
If you're launching a franchise, you need a franchise lawyer to ensure legal compliance from day one. This includes preparing disclosure documents, drafting franchise agreements, and establishing compliant operational procedures.
Franchise Disputes
Any conflict with franchisees, regulatory investigations, or potential litigation requires immediate legal representation. Don't attempt to handle these matters without qualified legal counsel.
Regulatory Changes
When franchising laws change, franchise lawyers help interpret new requirements and implement necessary compliance measures across your franchise system.
Intellectual Property Issues
Trademark registration and disputes, confidentiality breaches, or intellectual property licensing matters require legal expertise.
When You Need a Franchise Consultant
Business Model Development
If you're considering franchising but haven't developed a proven business model, a consultant can help create scalable systems and determine franchise viability.
Expansion Planning
When growing your franchise network, consultants provide market analysis, territory planning, and growth strategies tailored to your specific industry and target market.
Operational Improvements
Existing franchisors often engage consultants to optimise operations, improve franchisee satisfaction, or enhance profitability across the network.
Financial Analysis
Before making major business decisions, consultants can provide detailed financial modelling and feasibility studies to support informed decision-making.
Should I use a one-stop franchise consulting firm that includes legal services, or engage a lawyer and consultant separately?
It depends on your priorities. An end-to-end franchise consulting firm can be convenient - everything is under one roof, and the process may feel more streamlined. But convenience can come at a cost. When legal services are bundled in, the lawyer may not be truly independent and might be too closely aligned with the consultant’s commercial recommendations. That can be risky if a dispute arises or if you need frank legal advice that challenges the proposed strategy. Engaging a lawyer and consultant separately gives you more checks and balances, clearer accountability, and legal advice that’s fully focused on protecting your interests. Whichever path you choose, make sure your advisors are experienced in franchising and understand both the legal and commercial dimensions of your business.
How We can help
At Whelan Lawyers, we have deep expertise in franchise law and regularly collaborate with franchise consultants to support your growth - without compromising your legal protection.
Engaging us separately ensures your legal advice remains independent and in your best interests, while also providing a clear line of accountability for consultants.
We’re not here to simply sign off - we’re here to challenge assumptions, spot risks, and protect your commercial interests.
As a full-service commercial law firm, we don’t just advise on franchising, we partner with you as your business grows. From franchise agreement preparation and disclosure compliance to dispute resolution, commercial leasing, employment law, business sales, and beyond, we’re here for the long haul. Whether you're launching your first franchise or scaling an established network, we deliver legal clarity and confidence, so your business can grow on solid ground.
Don’t risk building your franchise on shaky legal ground. Engage a legal team that holds everyone accountable and scales with you. Contact Whelan Lawyers today to safeguard your business, strengthen your agreements, and stay one step ahead - legally and commercially.
Frequently Asked Questions
Question: Can a franchise consultant help me draft a franchise agreement?
Answer: No, only qualified lawyers can draft legal documents like franchise agreements. Franchise consultants can provide input on business terms and operational requirements, but the legal drafting must be completed by a franchise lawyer to ensure compliance with Australian law.
Question: Do I need both a franchise lawyer and consultant when starting a franchise?
Answer: While not legally required, most successful franchise systems benefit from both professionals. A consultant helps develop the business model and operational framework, while a lawyer ensures legal compliance and protects your interests. The investment in both professionals typically pays dividends in avoiding costly mistakes. Provided you have found the right franchise consultant.
Question: How much do franchise lawyers, and franchise consultants typically cost?
Answer: Costs vary significantly based on experience, location, prestige and project complexity. Franchise lawyers typically charge hourly rates ranging from $400-$800, while consultants mainly charge project-based fees, depending on the consultant, it could cost you anywhere between $30,000 - $150,000. Always request detailed fee estimates and compare the value proposition rather than just the cost.
Question: Can I use a general business lawyer instead of a franchise specialist?
Answer: While general business lawyers can handle basic commercial matters, franchise law is highly specialised with unique compliance requirements under the Franchising Code of Conduct. Using a franchise lawyer reduces the risk of compliance errors and typically provides more efficient service due to their focused expertise.
Question: What happens if I don't use professional advisors for my franchise?
Answer: Operating without proper professional guidance significantly increases your risk of legal non-compliance, which can result in ACCC enforcement action, penalties, and potential franchise system failure. The Franchising Code of Conduct imposes strict obligations, and mistakes can be costly to rectify later.
Disclaimer: This article provides general information only and is not legal advice. The law is complex and varies based on individual circumstances. You should seek specific legal advice about your particular situation before making any decisions about legal matters.
