Happy World Franchise Day! Today, on World Franchise Day, we’re celebrating the remarkable contribution that franchising in Australia has made to the Australian economy, and reflecting on where the sector is heading. With over $174 billion in economic impact and more than 500,000 jobs supported, franchising is a powerful force for business, growth, and opportunity.
At MST Lawyers, we’re proud to work with franchise networks of all shapes and sizes from household names to ambitious start-ups. Here are five key shifts we’re seeing in 2025 that are shaping the future of franchising in Australia.
1. Compliance isn’t a checklist – it’s a mindset
There’s more pressure than ever to stay on top of the rules. The Franchising Code of Conduct continues to evolve, and the ACCC isn’t shy about stepping in when something’s not right.We always tell our clients: don’t wait until something breaks. Build compliance into your everyday operations, not just as a once-a-year update to your disclosure document. The most successful franchise systems we work with treat compliance as part of their culture – not an afterthought.We’re also seeing more franchisors using tech and internal workflows to stay on top of things—like automated disclosure reminders, training logs, and regular network check-ins. This helps reduce risk, streamline admin, and keep everyone aligned.
2. “Good faith” really matters
You’ll find “good faith” written into the Code, and it’s not just a legal phrase. It’s about being honest, upfront and reasonable in how you deal with franchisees.
From renewals and exits to disputes and day-to-day support, franchisors are expected to act with transparency and fairness. Courts are watching, regulators are watching, and so are prospective franchisees.
Good faith isn’t just a legal duty, it’s smart business. It builds trust, strengthens your brand, and keeps your network more engaged and productive.
3. Disputes don’t have to get ugly
Disagreements happen in every franchise network. But they don’t have to turn into full-blown legal battles.
We’re seeing more franchisors take a proactive, respectful approach to resolving issues before they escalate. That might mean having clear dispute resolution steps in your franchise agreement, offering early mediation, or creating space for franchisees to raise concerns in a structured way.
When disputes are managed well, relationships can be repaired. That saves time, money and reputations and avoids unnecessary noise in the market.
4. Franchisees are more switched-on than ever
Franchisees are doing more homework than ever before. They’re asking sharper questions, comparing systems more closely, and looking for real value, not just a brand name.
If your franchise model isn’t clearly explained or commercially appealing, you’re going to lose them. The best franchisors are clear on the numbers, upfront about expectations, and focused on delivering long-term value – not just a one-off sale.
They’re also investing in strong onboarding and operational support, which pays off in performance and franchisee satisfaction.
5. The competition is heating up
Australia has a mature franchise sector, and it’s growing fast. New entrants (including big international brands) are raising the bar on innovation, customer experience and franchisee support.
To compete, Australian franchisors need to stay sharp. That means regularly reviewing your franchise agreement, protecting your brand and IP, and making sure your model still delivers strong returns for both you and your franchisees.
We work closely with franchisors to keep their systems up to date and legally strong so they can focus on growing their network with confidence.
Key Takeaways
- Don’t leave compliance to the last minute, make it part of how you run your business.
- Acting in good faith isn’t just required, it’s the key to long-term trust.
- The way you handle disputes says a lot about your brand, stay respectful and strategic.
- Franchisees are asking more of you, be ready to deliver.
- Stay competitive by keeping your system, structure, and legal documents up to date.
“Franchising works best when relationships, systems and values are aligned. Our role is to help franchisors build a strong legal foundation so they can focus on growth and performance.”
— Raynia Theodore, Principal, MST Lawyers
So what does it all mean?
Franchising in Australia is maturing, adapting, and thriving. Whether it’s through smarter compliance, more empowered franchisees, or evolving network structures, we’re seeing a sector that’s rising to meet the moment. And behind every successful franchise system? Dedicated business owners, hardworking franchisees, and supportive head office teams working together.
Let’s celebrate together
To all the franchisees, franchisors, suppliers, and teams we work with – thank you. You’re the reason this sector continues to grow with integrity and purpose.
If you’re building or scaling a franchise in 2025, we’re here to support you every step of the way.
Get in touch with our Franchise Law team today.
Happy World Franchise Day from all of us at MST Lawyers.
