Mia JonesGuzman y Gomez — better known to Australians as GYG — reported Q3 FY26 network sales of A$345.9 million, up 20 per cent on the prior year, and has plans to open 32 new restaurants across Australia before the financial year ends. Its ASX share price jumped more than 18 per cent in April 2026 on the back of that result. For anyone considering investing in a GYG franchise or any fast-food franchise in Australia, the strong headline numbers mask an equally important question: what legal rights do you actually have when a franchisor makes major operational decisions that affect your business?
The answer, according to Australian franchise law, is more nuanced than most buyers expect.
What GYG's Uber Eats Exclusivity Deal Reveals About Franchise Agreements
From 22 February 2026, GYG signed a multi-year exclusive delivery partnership with Uber Eats, making Uber the company's sole delivery platform partner in Australia. Delivery currently accounts for approximately 27 per cent of GYG's total domestic sales in the first half of FY26. Under the agreement, GYG franchise operators across Australia are required to process their delivery orders exclusively through Uber Eats.
GYG stated that "several initiatives" were put in place to protect franchise owners from disruption, including improved commercial terms with Uber Eats. The exclusivity does not apply to GYG's international markets — the US, Singapore and Japan continue to use multiple delivery partners.
But the deal raises a legal question that any prospective franchisee should understand: when a franchisor at the corporate level signs a contract that changes how your business must operate, what say do you have?
The Franchising Code of Conduct: Your Primary Legal Shield
Australia's Franchising Code of Conduct, administered by the Australian Competition and Consumer Commission (ACCC), sets the legal framework for all franchise agreements in Australia. It is a mandatory industry code under the Competition and Consumer Act 2010 and cannot be contracted out of.
Key protections for franchisees under the Code include:
Good faith obligations. Both the franchisor and franchisee must act in good faith in all aspects of the franchise relationship and dispute resolution. This applies to how franchisors introduce operational changes.
Disclosure requirements. Franchisors must provide a Disclosure Document at least 14 days before a franchise agreement is signed. This must include details of any supplier arrangements, including any exclusive supply requirements that affect a franchisee's operations.
Right to association. Franchisees have the right to form or join a franchise council or association, which gives them a formal mechanism to negotiate with franchisors on system-wide changes.
Dispute resolution. The Code mandates a structured mediation process before either party can pursue legal action over a franchise dispute, which often results in faster, lower-cost resolution than litigation.
Can a Franchisor Change the Rules Mid-Contract?
This is one of the most common questions raised by Australian franchise owners — and the answer depends heavily on the specific terms of your franchise agreement.
Most modern franchise agreements include clauses that allow franchisors to make "reasonable" updates to operational manuals, approved supplier lists, and technology systems. Whether a mandatory switch to a single delivery platform constitutes a "reasonable" operational update depends on how it affects your revenue and what notice period the franchisor provided.
Courts and tribunals in Australia have generally held that:
Material changes require adequate notice and consultation. A change that significantly affects revenue — such as removing delivery platforms that previously contributed a meaningful share of sales — is likely to be subject to heightened scrutiny under the good faith obligation.
System-level decisions are different from individual decisions. When a franchisor makes a network-wide decision (as GYG did with Uber Eats), it is generally harder for an individual franchisee to claim the change was targeted or discriminatory. But you can still challenge whether the change was commercially reasonable.
Compensation for loss may be available. If a franchisor's decision causes measurable, documented financial loss to a franchise business, the franchisee may have grounds to seek compensation — particularly if the disclosure documents at the time of signing did not disclose the potential for such a change.
Five Legal Questions to Ask Before Signing Any Franchise Agreement
Whether you are considering a GYG franchise, a McDonald's, a Jim's Mowing, or any other franchise system, these are the questions a franchise lawyer will typically walk you through:
1. What can the franchisor change in the operational manual without your consent? The manual often has broader latitude than the formal franchise agreement. Ask specifically about technology, supplier, and delivery platform mandates.
2. What is the term of the agreement and what are the renewal conditions? Renewal is not automatic. Franchisors can choose not to renew. Understand what investment you will need to make at renewal, and whether your territory is protected.
3. What are the approved supplier clauses? Are you required to buy products, packaging or services exclusively from franchisor-approved suppliers? Approved supplier arrangements affect your cost base and profitability.
4. What triggers an "event of default" on your side? Many franchise agreements define default broadly. Missing a reporting deadline or using a non-approved contractor can sometimes trigger termination rights for the franchisor.
5. How are disputes resolved? Confirm that the Code's dispute resolution process applies, and understand whether your agreement specifies an internal escalation path before mediation.
When to Seek Independent Legal Advice
The ACCC requires franchisors to provide prospective franchisees with an information statement advising them to obtain independent legal, accounting and business advice before signing. This is not a formality — it is a meaningful recommendation.
A lawyer specialising in franchise law can review the specific terms of your agreement, identify unusual or unfavourable clauses, and advise you on the practical implications of provisions you might otherwise overlook. Given that franchise agreements typically lock you in for terms of five to seven years — and that your investment can range from A$400,000 to over A$1 million for major brands — the cost of independent legal advice before signing is modest compared to what is at stake.
This article is for informational purposes only and does not constitute legal advice. Consult a qualified franchise lawyer for advice specific to your situation.
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