A new Franchising Code of Conduct was introduced on 1 April 2025. Some rules in the new code apply from 1 November 2025. Changes cover:
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.
The franchising code is a mandatory code of conduct that regulates the franchising industry in Australia.
A new Franchising Code of Conduct is in effect from 1 April 2025. Some changes take effect from 1 November 2025.
The ACCC conducts franchising compliance checks and takes action to enforce the law. We also educate franchisors and franchisees.
The franchise agreement is a contract. It sets out the rights and responsibilities of the franchisor and franchisee.
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.
Sometimes a franchisee may want to sell their business before the term of their agreement is up.
Franchise agreements usually operate for a limited time. Franchisees need to think ahead about what happens when the franchise agreement ends.
There are rules for how and when franchisors disclose information and give documents.
Franchisors must create a disclosure document to share key information about the franchise.
The franchisor must give the statement to prospective franchisees. It highlights issues to think about before becoming a franchisee.
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.
Franchisors must disclose supply arrangements, which are when they control who a franchisee can get their supplies from, what they can sell, or who they can sell to.
The franchise disclosure document must include information about significant capital expenditure that is required by the franchisor.
Franchisors must disclose extra information when there is a lease or other agreement related to the franchise.
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.
Collective bargaining is when 2 or more franchisees negotiate terms, conditions and prices with their franchisor.
As there is often a power imbalance between franchisors and franchisees, the code sets out what they must do when there's a dispute.
During a franchise agreement, the franchisor may want to sell or leave the franchise system.
Under the franchising code, there are some costs that franchisors can’t ask franchisees to pay for and some costs that can't be passed on.
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.
Use the register for free to find franchise information. Franchisors must create a profile and publish information.
Our free online course ‘Is franchising for me?’ is a great starting point if you're thinking about buying a franchised business.
If you operate a franchise system or a franchised business, you need to understand the laws that apply.
The ACCC is responsible for compliance and enforcement of the franchising code. We conduct franchising compliance checks and takes action to enforce the law. We also educate franchisors and franchisees.