If you are applying for a franchise loan Australia buyers often make one mistake before anything else.

They treat the disclosure document like a legal formality rather than a finance document.

Yes, the disclosure document is a legal document. But it is also one of the most important commercial documents you will receive when buying a franchise. If you read it properly, it can tell you a great deal about future costs, operational restrictions, dispute history and potential risks that may affect both your borrowing position and your long-term cash flow.

The ACCC requires franchisors to provide key pre-entry documents before an agreement is signed, and the current Code requires that prospective franchisees receive important documents, including the disclosure document, at least 14 days before entering into the agreement. The ACCC also says an information statement must be given within 7 days of interest being shown, before other documents are provided. (ACCC)

That timing matters.

If you are being rushed, or if key information only appears late in the process, that should be taken seriously. The ACCC’s quick guide says that if a franchisor is rushing you or gives important information at the last minute, you should stop and reconsider whether you should be buying the franchise.

So what should you look for with finance in mind?

Start with the obvious: upfront and ongoing payments. You want a clear picture of what you must pay to enter the system and what you must keep paying once the doors open. That includes franchise fees, royalties, marketing contributions, technology fees, training costs and any lease-related commitments.

Then look at future spending. Under the updated Franchising Code, disclosure around significant capital expenditure and specific purpose funds has become even more important. The ACCC says the new Code took effect on 1 April 2025, with some rules applying from 1 November 2025, including changes around significant capital expenditure and specific purpose funds. (ACCC)

Why does that matter for finance?

Because a business may look affordable at entry and still become expensive later. If the franchisor can require refurbishments, technology upgrades, rebranding or other major spend during the term, that affects your future cash flow and may affect how you structure your finance now.

Marketing-related costs deserve close attention too. The ACCC says that when a franchisee contributes to a specific purpose fund, such as a marketing fund, certain disclosures and statements are required. It also provides examples where more than one specific purpose fund may exist, such as a marketing fund and an IT fund. (ACCC)

That means buyers should not assume “marketing fee” is the only shared contribution they will make.

You should also pay attention to dispute history, franchisor experience, supply arrangements and earnings information. The ACCC’s disclosure guide encourages buyers to look for warning signs such as high dispute levels, lack of franchisor experience, restrictive supply arrangements, or vague treatment of significant capital expenditure. It also warns buyers not to rely only on earnings information from the franchisor and to do their own due diligence on viability. (ACCC)

This is one reason franchise lending is rarely just about the borrower.

It is also about the quality of the system and the clarity of the opportunity.

At Viewpoint Finance Group, we encourage clients to read the disclosure document with two questions in mind: “What am I committing to?” and “How will a lender view these obligations?” When those two questions are asked early, finance conversations become much more productive.

A disclosure document should not just help you decide whether to buy. It should help you decide whether the opportunity is structured in a way that is sensible to finance.