In our July newsletter, we reported the first fines issued by the ACCC against big brands MTA travel and Cash Converters for failure to update their Franchise Disclosure Register profiles. As we predicted, the ACCC has continued in its campaign to enforce compliance in this space and has now penalised another household brand for similar violations of the Franchising Code.
A Queensland-based Harvey Norman franchisor, HN Macgregor Franchisor Pty Ltd, has paid a $15,650 fine after the ACCC issued it with an infringement notice for alleged failure to include mandatory information on the Register before it entered into an agreement with a franchisee. HN Macgregor is the franchisor for the Harvey Norman complex located in Macgregor, Queensland. Across the country, there are approximately 200 franchised Harvey Norman stores in operation.
ACCC Deputy Chair Catriona Lowe explained that “franchisees should be able to rely on the fact that all relevant information has been disclosed on the register”.
Ms Lowe also reiterated earlier warnings that “the franchising sector should be on notice that failure to comply with the Franchising Code of Conduct may result in enforcement action by the ACCC.”
One of the ACCC’s current compliance and enforcement priorities is to ensure small businesses receive the protections of competition and consumer laws, including industry codes of conduct.
We remind all franchisors that, under the Franchising Code of Conduct, they must:
- Upload the mandatory information onto the Franchise Disclosure Register at least 14 days before entering into a franchise agreement; and
- Update that information on an annual basis.
Since 1 April 2025, the Register has included 2 new queries for franchisors to answer.
The penalty for breaching such obligations is 600 penalty units (equivalent to $198,000), per breach.
We again urge all franchisors to:
- Include all the prescribed information on the Register at least 14 days before entering into a franchise agreement;
- For franchisors with an existing Register profile – review this immediately to ensure it is current and that all mandatory queries have been responded to;
- Update your disclosure document within 4 months of the end of the financial year (by 31 October for most franchisors);
- Confirm or update the Register information annually, within 14 days of completing the annual disclosure document update (usually by 14 November);
- Update your franchise agreement by 1 November 2025 to incorporate new provisions required under the Code.
Need help reviewing your listing or updating your disclosure documents? MST Lawyers specialises in franchise compliance advice and can assist you in meeting your obligations under the Franchising Code of Conduct. Get in touch for tailored legal support for franchisors today.
