When things go wrong with a franchise

It is not possible to predict what can happen during a business relationship. Franchise agreements usually go for many years. Sometimes, things can go wrong.

When things go wrong for your business, but it’s no one’s fault

A business that starts out well can struggle later. This can be due to things outside of your control, such as changing consumer tastes, more competition, or big world events.

If your franchised business or the franchise system is not doing well, it doesn’t always mean a law has been broken.

It’s important to have trusted independent advisors, like an accountant or a business advisor, who you can turn to when things get difficult.

When you have a disagreement or conflict in franchising

The Franchising Code of Conduct says how disputes between a franchisee and a franchisor must be dealt with. Find out more about resolving franchising disputes.

Where to get help

Franchisees who need guidance and support to resolve their dispute can contact the Australian Small Business and Family Enterprise Ombudsman or their State Small Business Commissioner for help.

The ACCC does not act on behalf of individual franchisees or groups of franchisees. Find out more about what the ACCC does in franchising.

More information

Resolving franchising disputes

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

Where to get franchising help

Sometimes a franchisee needs help when they feel they’re not able to resolve their complaint with a franchisor or if they’re not sure about what steps to take next.