Becoming a multi-unit franchisee isn’t just about repeating what worked with store number one. It’s a whole new ball game!
Owning more than one site takes you from being an operator to being a leader, and that shift changes everything. The systems, structure and habits that made you successful in your first business often won’t hold up as your network grows.
It’s exciting, but it’s also a serious legal and management step up. From employment law and governance to leases, funding and understanding Code compliance, there’s more complexity than most franchisees expect.
Here are some things to consider before you grow.
- Think Beyond Replication
When your first franchise succeeds, it’s natural to want to replicate that success. But running two, three or ten stores isn’t about cloning the same model, it’s about learning to lead and manage at scale.
Each new location brings new challenges: different demographics, staff, landlords, costs and compliance obligations. What worked for your first store might not translate automatically.
Top Tip: Treat multi-unit growth as a business expansion, not a duplication exercise. Review your structure, systems and team before you commit to another site. If your first store relies heavily on you, you’ll need to build processes that let others deliver your standards when you’re not there.
- Manage Employment Obligations Like a Pro
Once you operate multiple sites, you’re no longer just a business owner, you’re an employer with real compliance responsibilities.
Under the Employment Legislation, you are legally responsible for correct pay, record-keeping, rostering and award compliance at every site. Even if your franchisor recommends HR software or provides template policies and procedures in the manuals, the obligation still sits with you.
In multi-site operations, payroll and rostering mistakes are easy to make and costly to fix. A single underpayment can escalate into a Fair Work audit, a backpay claim, or a dispute with your franchisor.
Top Tip: Centralise your HR and payroll systems. Use one reliable platform across all stores for timekeeping, rosters, leave and pay. Engage HR experts and build in checks and balances, schedule regular audits. Good systems and support protect you from accidental breaches.
- Build Strong Managers and Delegate With Oversight
You can’t be in every store at once. As you grow, your success depends on the people you trust to run your sites.
Strong managers are the backbone of multi-unit operations. They handle day-to-day performance, compliance and team culture when you’re not there.
But delegation doesn’t mean abdication. Without clear expectations and oversight, standards can slip quickly, and small issues can snowball into legal and financial risks.
Top Tip: Create a simple governance framework. That means clear reporting lines, KPIs for each store, and regular check-ins. Use cloud-based dashboards to track performance, compliance and payroll metrics in real time.
- Why You Still Need Each Franchise Agreement Reviewed — Even If You’ve Signed One Before
It’s easy to think, “I’ve done this before, I know what’s in the agreement.” But every franchise agreement is different, and even small changes can have major consequences.
Franchisors regularly update their documents to reflect new laws, Code updates and commercial priorities. A clause that once gave you 30 days to fix a breach might now give you seven. Renewal terms that were once automatic might now depend on new fit-out or compliance conditions.
With so many legislative changes, from the 2023 UCT reforms, to the April and November 2025 Code updates, the fine print is shifting faster than many franchisees realise.
That’s where an experienced franchise lawyer adds real value. A proper legal review goes well beyond checking compliance, it explains how the terms operate in practice and what they mean for your business day-to-day.
A skilled franchise lawyer will:
- identify how the new agreement differs from your previous one;
- highlight any new or changed obligations and why they matter;
- flag hidden costs, restrictions or practical risks; and
- advise what can realistically be negotiated before you sign.
This type of review turns complex legal wording into clear, actionable advice so you understand your rights, responsibilities and options before committing.
Many multi-unit operators only discover issues when they try to sell, transfer or renew, or when a compliance audit uncovers a breach they didn’t know existed. A legal review upfront is far cheaper (and far less stressful) than dealing with problems later.
Top Tip: Treat every new store as a fresh deal. Even if you know the brand and the franchisor, have every franchise agreement reviewed before you sign. The cost of a proper review is minor compared to the value of protecting your investment.
- Don’t Get Caught by Cross-Defaults
Many multi-site franchisees are surprised to discover that a problem at one location could potentially jeopardise all their stores.
Multi-site or “area development” deals often include cross-default clauses. This means that if you breach the franchise agreement at one site, for example, by falling behind on rent or failing a compliance audit, it could trigger default across your entire group. You don’t want this if you can avoid it.
That can be devastating if one location underperforms for reasons outside your control, such as road closures or landlord disputes.
Top Tip: Negotiate store-by-store cure rights and realistic performance timelines. You should have the opportunity to fix issues at one site without risking them all. This protects you if one store struggles temporarily.
- Align Your Leases and Franchise Agreements
Each store you open will come with a new lease (and a new landlord), and those lease terms must align with your franchise agreement. If your lease runs longer than your franchise term, you could end up paying rent on a store you’re no longer licensed to operate.
Conversely, if your lease expires before your franchise renewal, you might lose your location even if the franchise term continues.
Top Tip: Always check that your lease term and options match your franchise term and options. Get independent legal advice before signing any lease or incentive deed, don’t rely solely on the fact that this is ‘not your first lease’.
- Know When to Seek Advice
As you grow, the risks compound, but so do the rewards. The difference between smooth scaling and stress often comes down to getting the right advice early.
A quick review of your agreements, leases and HR systems can prevent months of costly problems later.
At Rise Legal, we help franchisees navigate that next stage of growth, reviewing franchise and lease documents, setting up compliance systems and making sure your structure supports, rather than hinders, expansion.
Top Tip: Don’t wait until something goes wrong to talk to a lawyer. The right advice early can save you from losing time, money and peace of mind later.
The Bottom Line
Owning multiple franchise sites can be incredibly rewarding, but it’s not just “copy and paste.” Each step up in scale adds new legal, financial and people challenges.
Before signing on for your next store, make sure your structure, systems and agreements are ready for it, because once you’re operating across several locations, the game changes.
If you’d like to sense-check your setup before expanding, I’d be happy to help you map out what to review and where to focus.
👉 Book a quick chat with me, Helen Kay, Principal of Rise Legal Business Lawyers: https://calendly.com/contracts-lawyer/zoom-meeting
Helen Kay, is an accomplished business and franchise lawyer with over two decades of legal expertise. As the founder of Rise Legal, Helen specialises in delivering strategic and practical commercial and franchise legal solutions. Her exciting career has seen her in pivotal roles at prestigious law firms, consistently offering exceptional legal counsel. Her unique combination of hands-on experience and visionary leadership positions her as an invaluable asset in the realm of commercial law and franchise expertise, assisting franchisors and franchisees in safeguarding their business through comprehensive commercial legal support.
Rise Legal Gold Coast | Perth | Sydney
T: 1300 064 707 | E: info@riselegal.com.au | https://riselegal.com.au
Disclaimer: This article is intended for informational purposes only and should not be considered legal advice. Consult with a qualified commercial lawyer for personalised advice related to your specific circumstances.
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