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Franchising resources we've created
We create resources for franchisors, franchisees, and anyone thinking about becoming a franchisee. The aim is to help them understand their rights and obligations.
You can access our franchising resources online.
Compliance work we've carried out
In 2023 we published a report on unfair contract terms in franchise agreements which summarises the key findings of targeted compliance checks. Our checks focused on smaller franchisors in a range of industries, many of which were new to franchising.
- We identified a significant number of clauses in the franchise agreements that raised concerns under the unfair contract terms laws.
- The documents we assessed were largely compliant with the Franchising Code and we did not identify any systemic issues or concerns under the code.
- The report also provides guidance for franchisors about complying with the unfair contract term laws, which since November 2023 attract financial penalties.
In 2019 we published a report on disclosure practices in food franchising which summarises the key findings of our targeted compliance checks on 12 franchisors from the food services sector.
- Our checks focused on disclosure of information that we consider important to someone thinking about buying a franchise.
- We assessed franchisor compliance with disclosure of former franchisee contact details, supply restriction details, and key unavoidable costs.
Enforcement action we've taken
Types of enforcement action we take
Sometimes, the ACCC will take action to enforce competition and consumer laws. There are different things the ACCC can do to enforce laws.
We can:
- accept an administrative resolution from a franchisor. This is where the franchisor agrees to do, or stop doing, certain things to address concerns that we’ve raised about their conduct
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accept a court-enforceable undertaking from the franchisor, where the franchisor agrees to do, or not do, certain things. A court can enforce what is agreed
- issue an infringement notice to the franchisor, if we think the franchisor has breached a penalty provision. We have guidelines on how we use infringement notices. You can view paid infringements on our infringement notices register
- take court action against the franchisor. Ultimately, the court will decide if any laws have been breached.
Examples of enforcement action we've taken
2023
- Honda to pay $6m in penalties for misleading consumers about dealership closures
- Delicia Franchising admits breaches of Franchising Code
2022
- Jim’s Group pays penalties for alleged breach of Franchising Code and the Australian Consumer Law
- RFG to pay certain franchisees as ACCC settles legal action
2021
- Jump Swim ordered to pay penalties of $23 million and Ian Campbell ordered to pay compensation
- Megasave and Gary Bourne to pay penalties for misleading prospective franchisees
2020
- Back In Motion Physiotherapy to remove alleged unfair contract terms for franchisees
- Bob Jane gives undertaking in relation to franchise agreements
2019
- $4.2 million in penalties ordered against former car wash franchisor Geowash and two executives (and Geowash franchise appeal dismissed in 2021)
- Ultra Tune to pay $2.6 million penalty and Full Federal Court confirms franchisor obligations in Ultra Tune appeal decision
2018
2017
- Fastway Couriers (Perth) pays penalty for alleged franchising code breach
- Pastacup to pay $100,000 for breaches of new franchising code
- Domino’s pays penalty for alleged franchising code breach
2016
2015
2014
- Express Mobile Services gives undertaking in relation to alleged misleading representations
- Taxsmart to repay franchise fees for misleading conduct