Quick answer: To buy a franchise in Australia, hear from the brand’s franchisees, enquire, speak to the franchisor, call every franchisee you can, and try the work on an observation day. Then read the disclosure document for at least 14 days with independent advice before you sign. Once you sign, the Franchising Code gives you a 14-day cooling-off period.
This guide comes from Jim’s Group, Australia’s largest franchise network, with 5,870 franchisees across 50+ divisions. It draws on conversations with hundreds of people who have bought a Jim’s franchise over the years: what they checked, who they called, and what made up their mind.
Key takeaways
- Hear from real franchisees before you enquire. Videos and podcasts show you the work, the support and the people before anyone tries to sell you anything.
- Call every single one of the franchisees. That’s Jim Penman’s advice to every prospect. The ACCC suggests at least 5 current and 5 former as a minimum, and calls it a red flag if that’s hard to do.
- Try the work before you commit. An observation day tells you more about whether you’ll enjoy the business than any brochure or AI answer.
- Take the full 14 days with the disclosure document, and get independent legal and accounting advice. The Franchising Code gives you that time for a reason.
- Choose something you’ll like doing. You’ll be doing it every day.
What are the steps to buying a franchise in Australia?
Buying a franchise in Australia takes nine steps, from working out whether franchising suits you to your first day on the job. The Franchising Code of Conduct, enforced by the ACCC, sets the legal minimums: an information statement after you show interest, at least 14 days with the documents before you sign, and a 14-day cooling-off period after.
- Decide whether franchising suits you
- Hear from franchisees before you enquire
- Enquire and speak to the franchisor
- Call every single one of the franchisees
- Do an observation day
- Try the training before you commit
- Read the disclosure document and get advice
- Sign, then use your cooling-off period
- Start work
Step 1: Decide whether franchising suits you
A franchise suits people who want to run their own business but would rather follow a proven system than build one from scratch. The ACCC runs a free online course, “Is franchising for me?”. It has 6 modules and takes less than 90 minutes. It’s a good first check before you look at any brand.
Pick a type of business you’ll actually enjoy. Mowing, cleaning, dog washing and handyman work are very different days.
Step 2: Hear from franchisees before you enquire
The best early research is hearing from people already doing the job. Look for videos, podcasts and interviews where franchisees talk openly about the work, the training, the support and the money.
Jim’s publishes hundreds of these on the Jim’s Group YouTube channel and the More Than Just Mowing podcast. Joel Kleber, Chief Marketing Officer at Jim’s Group, said:
“A lot of franchisees, even before they enquire, check out the podcast or the YouTube channel. We’ve got all these videos of our franchisees talking about the system, the franchisors, Jim and the training, so you can really see what you’re getting into before you even enquire. Plenty keep watching after they enquire too. It really helps with the decision.”
Talk it over with family and friends too. They’ll have questions, and it’s better to answer them early.
Step 3: Enquire and speak to the franchisor
Enquiring starts the formal process. Under the Franchising Code, the franchisor must give you an information statement as soon as possible, and no later than 7 days after you show interest, before any other documents. The information statement covers the risks of franchising, how to research a franchise, and the questions to ask.
Then you’ll speak to the franchisor. Go in with your questions written down. There’s a list further down this page.
At Jim’s, you can enquire online at jims.net or call 131 546. The regional franchisor for your division and area will then call you. It’s no commitment and no obligation.
Step 4: Call every single one of the franchisees
Jim Penman, founder of Jim’s Group, gives every prospective franchisee the same advice: call every single one of the franchisees. Speak to them and ask them a lot of questions before you do anything else. That applies to any franchise system you’re looking at, not only Jim’s.
The ACCC sets a lower bar. It suggests speaking to at least 5 current and 5 former franchisees, and you don’t need the franchisor’s permission. It says to treat it as a red flag if there are no contact details or the franchisees are too hard to reach. The disclosure document must include contact details for existing and former franchisees.
“The best prospects call every single one of the franchisees. They speak to them and ask them a lot of questions before doing anything. That’s what you should do in any franchise system: speak to the actual franchisees in it. Our franchisors give you a list of current franchisees in your area, and as Jim always says, we actively encourage you to call them. We don’t hide anything behind NDAs. Jim pioneered that back in 1989.”
– Joel Kleber, Chief Marketing Officer at Jim’s Group, said:
Franchisees say the same thing. One told the Jim’s Group YouTube channel:
“Make sure you speak to all the franchisees, or as many as you can, because ultimately they’ll give you the good, the bad and the ugly.”
– Jim’s franchisee, Jim’s Group YouTube channel (July 2026)
Ask them what a normal week looks like, how much work comes in, what the support is like, and what they wish they’d known. Then ring the next one.
Step 5: Do an observation day
An observation day is a day working alongside an existing franchisee to see the business as it really is. It’s the best way to find out whether you’ll enjoy the work and handle the physical side of it.
Jim’s observation days are free, and you can do as many as you like.
Step 6: Try the training before you commit
Some franchisors let you attend training before you sign anything. If yours does, take the chance: you’ll learn how the business runs and meet the people supporting you before any money is locked in.
At Jim’s, you can attend training before signing a franchise agreement.
Step 7: Read the disclosure document and get advice
The franchisor must give you the disclosure document, the franchise agreement in the form you’ll sign, and a copy of the Code at least 14 days before you sign. Use every one of those days.
- Read the disclosure document properly. The section below explains what to check.
- Look the franchise up on the Franchise Disclosure Register (franchisedisclosure.gov.au), a free public register run by the Australian Government. The ACCC says to be careful before handing over money or signing if a franchisor isn’t on it.
- Get independent legal, accounting and business advice, ideally from advisers with franchising experience, as the ACCC recommends.
- Work out your numbers: the upfront cost, ongoing fees, and enough money to live on while you build up. See how much a franchise costs in Australia.
Step 8: Sign, then use your cooling-off period
After signing a new franchise agreement, you have 14 days to change your mind. This is the cooling-off period. The franchisor must refund your payments within 14 days, minus any reasonable expenses that are set out in the agreement.
Step 9: Start work
Once you’ve signed and finished training, you start trading. A good franchisor keeps supporting you through the first weeks, when you’re building your client base.
At Jim’s, you don’t go live until you feel ready, and the Pay-For-Work Guarantee applies from day one. It means that if Jim’s can’t supply enough work, your income is guaranteed: $2,000 or $2,500 a week in most divisions, and up to $3,000 a week in some, such as Jim’s Diggers.
What questions should you ask a franchisor?
The right questions show you the real cost, the real workload and how much support you’ll get. Write these down before you speak to any franchisor:
- Do you take a percentage of my revenue, or are your fees fixed? What’s my total cost each month, including marketing and lead fees?
- How much work is there in my area right now, and where does it come from?
- What happens if there isn’t enough work?
- What does the territory include, and can I buy an existing business with customers?
- What equipment and training are included in the price?
- Can I attend training before I sign?
- Can I see a list of current franchisees, and can I call them?
- How many franchisees left in the last three years, and why?
- What support will I get in my first few months?
- What does it cost to sell or exit the franchise?
Compare the answers with the disclosure document and with what franchisees tell you. If the three don’t match, find out why.
What should you check in a franchise disclosure document?
A franchise disclosure document is the franchisor’s formal statement of the facts about its franchise system. The Franchising Code requires it to be given at least 14 days before you sign. These are the sections that matter most to a buyer:
| Section | What to look for |
| Franchisor details and business experience | Who runs the system and how long they’ve done it |
| Litigation | Court cases involving the franchisor |
| Existing and former franchisees | How many there are, contact details, and how often franchises were transferred, closed or terminated in the last 3 financial years |
| Site or territory | What area you get and whether it’s exclusive |
| Significant capital expenditure | Big costs you’ll be expected to pay later, such as new equipment or a vehicle |
| Specific purpose funds | How marketing and other shared funds are collected and spent |
| Earnings information | Any figures the franchisor gives about what you could earn, and what they’re based on |
| Financial details | Whether the franchisor is financially sound |
Have your lawyer and accountant read it with you. The disclosure document doesn’t replace your own research, and the Franchise Disclosure Register doesn’t replace the disclosure document.
Can AI help you choose a franchise?
AI tools are useful for learning the basics and drawing up questions, but they can’t tell you whether you’ll enjoy the work or get on with the people. Joel Kleber said:
“A lot of franchisees use AI as well, but AI can only give you so much information. Watch the videos, speak to the franchisor and actually do the observation day. That will really tell you if you’re interested or not. And choose to go for something you like.”
What are the red flags when buying a franchise?
The biggest red flags are anything that stops you checking the facts for yourself. Walk away, or slow right down, if you see any of these:
- There are no franchisee contact details, or franchisees are hard to reach. The ACCC calls this a red-flag warning. You should be able to call every single one.
- The franchisor isn’t on the Franchise Disclosure Register.
- You’re pushed to sign or pay before you’ve had the documents for 14 days.
- You’re asked to sign an NDA before you can speak to franchisees.
- The fees, the disclosure document and what franchisees tell you don’t add up.
How long does it take to buy a franchise?
The Franchising Code sets the minimum timeline: the information statement within 7 days of showing interest, at least 14 days with the documents before you sign, and a 14-day cooling-off period after signing. Beyond that, it depends on the franchise and how much research you do.
At Jim’s, the timing varies by division and area, and you don’t go live until you feel ready.
Franchise buying FAQs
A franchise information statement is a document the franchisor must give a prospective franchisee as soon as possible, and no later than 7 days after they show interest, under the Franchising Code of Conduct. It explains the risks of franchising, how to research a franchise, and the questions to ask.
The Franchise Disclosure Register is a free public register, run by the Australian Government at franchisedisclosure.gov.au, where most franchisors must keep a profile of their franchise system. Buyers can search it by name, ABN or industry to check and compare franchises before signing.
Yes, and you should call every single one you can. Jim Penman, founder of Jim’s Group, advises prospects to call every franchisee and ask plenty of questions. The ACCC suggests at least 5 current and 5 former franchisees as a minimum, and you don’t need the franchisor’s permission. Jim’s franchisors give prospective franchisees a list of current franchisees in their area to call, with no NDA.
Yes. Prospective Jim’s franchisees can attend training before signing a franchise agreement, so they can see how the business runs before they commit.
Yes. Jim’s offers free observation days working alongside an existing franchisee, and prospective franchisees can do as many as they like.
Under the Franchising Code of Conduct, you have 14 days after signing a new franchise agreement to change your mind. The franchisor must refund your payments within 14 days, minus reasonable expenses set out in the agreement.
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) helps with franchise disputes. If the parties can’t agree on a mediator, the ASBFEO appoints one within 14 days of a request. Its information line is 1300 650 460.
Ready to take the first step?
Start with step 2: watch the Jim’s franchisee videos and podcast. When you’re ready, enquire and a Jim’s franchisor will call you. Then do what Jim tells every prospect: call every single one of the franchisees.
Or call 131 546 and ask about owning a Jim’s franchise.
Sources
- ACCC: The information statement for prospective franchisees; Before you sign a franchise agreement; Questions to ask former and current franchisees; Is franchising for me? (free online course); Franchise Disclosure Register
- Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (F2024L01605), including Schedule 1 (disclosure document)
- Franchise Disclosure Register: franchisedisclosure.gov.au
- business.gov.au: Buy a franchise
- Australian Small Business and Family Enterprise Ombudsman: Franchising Code of Conduct and alternative dispute resolution
- Jim’s Group: Own a franchise; FAQ; Jim’s Group YouTube channel; More Than Just Mowing podcast