Franchising

Disclosure practices in food franchising

This report summarises the key findings of targeted compliance checks conducted in 2019 by the ACCC on franchise systems in the food services sector.

Quick guide to a franchise disclosure document

This is a quick guide to help prospective franchisees read and understand their franchise disclosure document.

Small business in focus - 1 January to 30 June 2019

This twice-yearly report provides a summary of ACCC activities in the small business, franchising and agriculture sectors.

Feedback sought on collective bargaining plan for small businesses

The ACCC is seeking views on its proposal to implement a class exemption that would allow small businesses to collectively negotiate with their suppliers and processors, and franchisees and fuel retailers to collectively negotiate with their franchisor or fuel wholesaler, without first having to seek ACCC approval.

Currently, groups of competitors seeking to negotiate together must first obtain formal approval from the ACCC under its ‘authorisation’ or ‘notification’ processes.

Court finds former car wash franchisor Geowash acted unconscionably

The ACCC has successfully prosecuted former hand car wash and detailing franchisor Geowash in the Federal Court for acting unconscionably, making false or misleading representations, and failing to act in good faith in breach of the Franchising Code of Conduct in relation to the sale and marketing of its franchises.

The ACCC began investigating Geowash in late 2015, and subsequently launched court proceedings. In a decision handed down on 8 February, the Court found that Geowash made false or misleading representations on its website by:

ACCC to focus on franchisors' disclosure in the food services sector

Café, restaurant and take away food services industries will be the target of the ACCC’s next round of Franchising Code compliance checks.

The ACCC has responsibility for regulating the Franchising Code of Conduct in Australia, which includes conducting an active compliance check program.

“The ACCC receives more franchising code related reports from café, restaurant and take-away food franchisees than any other sector, and for this reason franchisors operating in this sector will be the target of our next round of checks” Deputy Chair Mick Keogh said.