- within Corporate/Commercial Law topic(s)
- with Senior Company Executives, HR and Finance and Tax Executives
- in United States
- with readers working within the Banking & Credit, Consumer Industries and Insurance industries
In Australia, the conduct between franchisors and franchisees is regulated by the Competition and Consumer (Industry Codes-Franchising) Regulations 2024 ("Franchising Code of Conduct"). The Franchising Code of Conduct is a mandatory industry code enacted pursuant to the Competition and Consumer Act 2010 (Cth) ("CCA"), and makes compliance mandatory for those caught by the Franchising Code of Conduct.
With some limited exceptions, the Franchising Code of Conduct applies to a 'franchise agreement', as defined under the Code, that is entered into, renewed, transferred or extended on or after 1 April 2025, and to conduct engaged in on or after 1 April 2025 in relation to such an agreement1.
The Australian Competition and Consumer Commission ("ACCC"), which is responsible for regulating the CCA and the Franchising Code of Conduct, recently issued infringement notices against three franchisors for allegedly breaching the Franchising Code of Conduct, as follows:
- A Harvey Norman franchisor, HN Macgregor Franchisor Pty Ltd, paid a penalty of $15,650 for allegedly failing to include mandatory information on the Franchise Disclosure Register before entering into an agreement with a franchisee in July 20242.
- A second-hand goods retailer and pawn broker, Cash Converters Pty Ltd, and travel agency, MTA-Mobile Travel Agents Pty Ltd each paid a penalty of $16,500 for each allegedly failing to meet their obligation to annually update or confirm franchisor information on the Franchise Disclosure Register3.
The Franchisor Disclosure Register ("Register") is a free online register hosted by the Australian Government, which gives the public access to information provided by franchisors. Under section 92 of the Franchising Code of Conduct, franchisors must provide specified information for inclusion in the Register such as the franchisor's name; the name under which the franchisor carries on business in Australia relevant to the franchise; the franchisor's Australian Business Number; the address of the franchisor's registered office and principal place of business in Australia; the business telephone number and email address of the franchisor; the ANZSIC division and subdivision codes for the industry in which the business operated under the franchise operates; and any other information required by the Secretary4.
Franchisors are also required to annually update or confirm information included in the Register in accordance with section 93 of the Franchising Code of Conduct5.
If you wish to discuss the Franchising Code of Conduct or the above further, please contact Pointon Partners.
Footnotes:
1 Section 97(1) Franchising Code of Conduct
2 ACCC Media Release dated 4 August 2025, "Harvey Norman franchisor pays penalty for alleged breach of franchising code"
3 ACCC Media Release dated 26 June 2025, "Cash Converters and Mobile Travel Agents pay penalties for allegedly breaching Franchising Code of Conduct"
4 Section 92(2) Franchising Code of Conduct
5 Section 93 Franchising Code of Conduct
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
