What the ACCC can't do

  • We don’t give legal advice.
  • We don’t resolve individual franchising disputes.
  • We don’t take enforcement action in response to every report we receive.

New franchising code rules

Anew Franchising Code of Conduct was introduced on 1 April 2025. Some rules in the new code apply from 1 November 2025. Changes cover:

  • disclosure of significant capital expenditure
  • the specific purpose fund
  • reasonable opportunity to make a return on investment
  • compensation for early termination
  • restraint of trade clauses.

We’ve prepared guidance to help franchisors understand the changes under the new code and when they apply. Where relevant, we have updated and added information about the changes to franchising pages.

About franchising and the code

If you operate a franchise system or a franchised business, you need to understand the laws that apply. 

The franchising code is a mandatory code of conduct that regulates the franchising industry in Australia. 

Parties must act in good faith in their business dealings with each other. This includes those who enter, or propose to enter, into a franchise agreement.

When you're thinking about buying a franchise

Buying a franchise is a big decision. Find out as much as you can beforehand from legal advisors, the franchisor, and current and past franchisees.

Our free online course ‘Is franchising for me?’ is a great starting point if you're thinking about buying a franchised business.

The franchisor must give the statement to prospective franchisees. It highlights issues to think about before becoming a franchisee.

Beginning a franchise agreement

The franchise agreement is a contract. It sets out the rights and responsibilities of the franchisor and franchisee.

Supply arrangements are when a franchisor controls who a franchisee can get their supplies from, what they can sell, or who they can sell to.

Franchisors must disclose extra information when there is a lease or other agreement related to the franchise.

Franchisors must create a disclosure document to share key information about the franchise.

The franchise disclosure document must include information about significant capital expenditure that is required by the franchisor.

It’s common for franchisors to require franchisees to pay money on an ongoing basis for a specific common purpose, such as marketing fees. There are rules to follow.

Use the register for free to find franchise information. Franchisors must create a profile and publish information.

Under the Franchising Code of Conduct, there are some costs that franchisors can’t ask franchisees to pay for.

There are rules for how and when franchisors disclose information and give documents.  

During a franchise agreement

Events during an agreement

During a franchise agreement, the franchisor may want to sell or leave the franchise system.

After an agreement has been signed, the franchisor usually can’t change a franchise agreement.

​​​​​​Franchisees are not automatically entitled to a further term. Franchisors must notify franchisees whether they'll extend or grant another agreement. 

Ending an agreement and resolving disputes

Franchise agreements usually operate for a limited time. Franchisees need to think ahead about what happens when the franchise agreement ends.

Sometimes a franchisee may want to sell their business before the term of their agreement is up. 

As there is often a power imbalance between franchisors and franchisees, the code sets out what they must do when there's a dispute.

Subscribe to the Franchising Information Network

Keep up to date on the franchising code and other industry news. Receive updates by email through the network.

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ACCC action in franchising

The ACCC is responsible forcompliance and enforcement of the franchising code. We conduct franchising compliance checks and takes action to enforce the law. We also educate franchisors and franchisees.

A Harvey Norman franchisor in Queensland, HN Macgregor Franchisor Pty Ltd, has paid a $15,650 penalty for allegedly breaching the Franchising Code of Conduct.
Franchisors Cash Converters Pty Ltd and MTA - Mobile Travel Agents Pty Ltd (MTA) have each paid a $16,500 penalty after the ACCC issued both companies with an infringement notice after they each allegedly breached the Franchising Code of Conduct.
The Full Federal Court has today dismissed an appeal by Ultra Tune Australia Pty Ltd (Ultra Tune), upholding a decision of the Federal Court in March 2024 to impose $1.5 million in fines for four separate instances of contempt of court.