Franchising code of conduct

If you're thinking about buying a franchise, it’s important that you understand whether it's right for you before making a final decision or signing a franchise agreement.

Franchising Code

The Franchising Code of Conduct is a mandatory industry code across Australia that regulates the conduct of franchising participants towards each other.

Buying a franchise

Buying a franchise is a big decision. It is important you understand what you are getting into before you make the final decision.

Acting in good faith

Under the Franchising Code of Conduct, parties who enter, or propose to enter, into a franchise agreement must act in good faith towards one another. This means that both current and prospective franchisees and franchisors must act in good faith in their business dealings with each other.

Resolving franchising disputes

The Code provides mechanisms for parties to a franchise agreement to try and resolve disputes in a timely and cost effective manner.

End of franchise agreements

Franchise agreements generally operate for a set period. Some franchise agreements may include a right to renew or extend at the end of this period, but this is not guaranteed.

Franchising investigations

The ACCC investigates alleged breaches of the Franchising Code or the Competition and Consumer Act 2010 and can take enforcement action where appropriate.

Franchising penalties & infringements

Franchisees and franchisors risk financial penalties and infringement notices if they breach certain provisions of the Franchising Code.

Disclosure obligations & COVID-19

Franchisors who are reviewing and updating their disclosure documents must ensure they comply with the Franchising Code and do not contravene the Australian Consumer Law.

Franchising Code frequently asked questions

Our frequently asked questions provide guidance for franchisors, franchisees and prospective franchisees.