The Australian Competition and Consumer Commission (ACCC) has issued a fresh reminder to franchisors to understand and comply with their obligations under the Franchising Code of Conduct. The reminder focuses on two areas the regulator is clearly watching closely — specific purpose funds (including marketing funds) and the Franchise Disclosure Register — and it lands alongside a recent enforcement outcome that shows the ACCC is prepared to act.
If you operate a franchise system, now is the time to check that you are compliant.
| Area | What the ACCC expects |
|---|---|
| Marketing funds |
|
| Disclosure registers |
|
| Internal processes and training | Ensure the people responsible for fund administration and franchisee onboarding understand the Franchising Code requirements that apply from 1 November 2025. |
New Rules For Specific Purpose Funds
From 1 November 2025, changes to the Franchising Code introduced new rules for franchisors that administer specific purpose funds, which captures what were previously known as marketing funds. Will also now capture conference funds and IT/development funds.The new obligations govern how these funds are operated, used, reported, and disclosed.
The key obligations that warrant immediate attention. Fund administrators must:
- keep the funds in a separate bank account;
- within 4 months after the end of a financial year prepare an annual financial statement that gives franchisees meaningful information about what money went into the fund, where it came from, and how it was spent; and
- within 4 months after the end of a financial year have the annual financial statement audited, unless 75% of the franchisees in Australia who paid money to the fund vote to agree that the fund not be audited. Such vote must occur within 3 months after the end of a financial year
For franchisors with an ordinary financial year the deadline for the financial statements and audit is 31 October 2026 (with any vote to occur by 30 September 2026).
The policy intent behind these measures is greater franchisor accountability and transparency for the franchisees who contribute to these funds. In practical terms, franchisors should not treat fund monies as part of general working capital, and the annual statement needs to be substantive rather than a formality.
Franchise Disclosure Register Obligations
Franchisors are required to provide certain information for their profile on the **franchise disclosure register** within set timeframes. The ACCC has been explicit that failing to maintain an accurate and up-to-date profile is itself a breach of the Code — and one that may attract enforcement action.
This is an area where compliance can quietly lapse: profiles that were accurate at registration can drift out of date as a system changes. A periodic review of your register profile against your current arrangements is a straightforward way to reduce risk.
Recent enforcement
The reminder is not merely educational. The ACCC has pointed to recent enforcement action against franchise operator **Venue Smart Pty Ltd**, which paid **$59,400 in penalties** after being issued with three infringement notices for separate alleged contraventions of the Code.
The ACCC alleged that Venue Smart failed to:
- prepare an annual financial statement, as required by the Code, for its marketing fund for the 2024–25 financial year;
- keep a separate financial institution account for franchisee payments into its marketing fund for the 2024–25 financial year; and
- provide the required disclosure register information at least 14 days before entering into a franchise agreement with a prospective franchisee.
The alleged conduct maps directly onto the two focus areas of the ACCC’s reminder — fund administration and disclosure register timing — which reinforces that these are live enforcement priorities, not theoretical concerns.
What franchisors should do now
Against this backdrop, we recommend franchisors take the following practical steps:
- Audit your fund arrangements: Confirm that specific purpose fund monies are held in a separate account and arrange the annual financial statement and audit (or vote) for the FY2026 financial year.
- Review your disclosure register profile: Check that it is complete, accurate and current.
- Refresh internal processes and training: Ensure the people who administer funds and manage franchisee onboarding understand the Franchising Code post-1 November 2025 requirements.
How MST Lawyers can help
Franchising is a specialised and closely regulated area, and the consequences of getting compliance wrong now include infringement notices and financial penalties. If you are unsure whether your fund administration, financial reporting or disclosure register practices meet your Code obligations, we can help you assess your position, including review your processes, specific purpose fund financial statements and put compliant processes in place before an issue arises.
Our franchising team acts for franchisors across the full range of transactional, advisory and compliance matters. To discuss your Code obligations or arrange a compliance review, please contact our office.
