Starting 1 November 2025, brand-new rules under the Australian Competition and Consumer Commission (ACCC) Franchising Code of Conduct will reshape franchise agreements across Australia.
The government-backed changes are designed to give franchisees greater protection and promote fairness and transparency in the industry. Among the key updates:
Franchisees will be entitled to compensation if their agreements are ended early due to franchisors exiting the market or restructuring their networks.
Franchisors must provide franchisees with a fair chance to earn a return on their investment.
Disclosure documents must clearly outline any significant costs or capital expenditures franchisees may face.
Marketing and training funds now have to be held in separate bank accounts, with detailed annual reporting.
In some cases, franchisees can waive their cooling-off period when signing up.
Penalties have been increased significantly, with franchisors facing fines of up to $198,000 for breaches.
Franchisor backgrounds and obligations must be disclosed more transparently than ever before.
These changes mean franchisors need to update their agreements and disclosure materials by the November deadline to avoid penalties and protect their franchisees.
For anyone buying or owning a franchise, it’s crucial to understand these new protections and check that any new agreements meet the updated legal standards.
(source: ACCC)
