The Australian Competition and Consumer Commission (ACCC) has released a new Information Statement for Prospective Franchisees, which is now available on its website. 👉 Click here to view the 2025 Information Statement (PDF)
Why this matters
Under the Franchising Code of Conduct, franchisors are legally obligated to provide a copy of the ACCC’s Information Statement to any prospective franchisee who either:
Formally applies for a franchise, or
Expresses an interest in acquiring a franchised business.
This must be done:
As soon as practicable, and
No later than 7 days after the initial application or expression of interest,
Before providing any of the franchise documents listed under section 23(2) of the Code.
💡 Important: Simply including the Information Statement in the document suite given to a prospective franchisee does not meet the timing requirements under the Code. It must be provided early and separately.
What happens if you don’t comply?
Failure to meet these obligations may result in civil penalties of up to 600 penalty units — currently equivalent to $198,000 per breach.
Are there any exceptions?
Yes. You are not required to provide the Information Statement if:
The franchise agreement is being renewed, or
The term or scope of an existing agreement is being extended.
⚠️ However, if your agreement does not provide for a renewal or extension and instead requires a new agreement upon expiry, it is best to err on the side of caution and issue the updated Information Statement anyway.
What should franchisors do now?
Ensure your recruitment team is fully briefed on the new requirements.
Distribute the updated Information Statement to prospective franchisees within 7 days of any formal application or expression of interest.
If you have already provided an earlier version of the Information Statement to any prospective franchisees who have not yet signed a franchise agreement, we recommend you now provide them with the updated 2025 version to ensure best practice compliance.
If you have any questions or need assistance meeting your compliance obligations under the Franchising Code of Conduct, our team is here to help. Please don’t hesitate to get in touch.
