Could Failing to Update the Franchise Register Cost you $16,500.00?

Co-Authored by Monica Smsarian

KEY TAKEAWAYS:

• Cash Converters Pty Ltd and Mobile Travel Agents Pty Ltd were found to have failed to update or confirm their franchisor information on the Franchise Disclosure Register, as required annually by the Code.
• The Franchise Disclosure Register is a public platform, hosted by the Department of the Treasury, aimed at increasing transparency for current and potential franchisees. It allows users to access vital franchisor information to inform their investment decisions.
• The ACCC stated that the failure to maintain accurate and current entries undermines transparency and reliability, which are critical for franchise sector confidence.

If you’re a franchisor and unsure about your obligations under the Franchising Code, our Commercial Law team at Coutts Lawyers and Conveyancers can help ensure your register is up to date and compliant, avoiding costly penalties.

The Code Requirements

The Franchising Code of Conduct is a legally binding instrument under the Competition and Consumer Act 2010 (Cth). Among other things, the Code requires franchisors to:

• Maintain and annually confirm their profile on the Franchise Disclosure Register;

• Comply with disclosure obligations to franchisees;

• Keep franchise agreement terms fair and transparent;

• Cooperate in resolving disputes in accordance with the Code.

Failure to comply may result in infringement notices and penalties.

The ACCC’s Message to the Sector

The ACCC has indicated it will continue to closely monitor franchising sector compliance, especially around obligations to maintain the Register. This enforcement action highlights the importance of franchisors understanding and fulfilling all requirements under the Code.

In March 2025, the Australian Government also announced an additional $7.1 million in funding over two years to help the ACCC enhance its education, enforcement, and engagement efforts regarding the Franchising Code of Conduct.

Key Takeaways for Franchisors

If you are a franchisor, ensure that:

• Your Franchise Disclosure Register entry is reviewed and updated annually.
• All required documents and disclosures under the Code are timely and accurate.
• Your team is trained and aware of obligations to avoid penalties and reputational risk.

If you need further advice, contact the Commercial Law team at Coutts Lawyers and Conveyancers, who will be able to advise you.

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