If you’re a franchisor operating in Australia, it’s time to double-check your compliance obligations. The ACCC has just issued its first fines for failing to update the Franchise Disclosure Register – and this should serve as a wake-up call for the entire franchising sector. With new regulatory requirements now in effect and further enforcement measures on the horizon, franchisors who fail to act risk not just reputational damage, but significant financial penalties. In this article, we break down what happened, what’s required, and what steps you should take now to avoid becoming the ACCC’s next target.
A couple of weeks ago the Australian Competition and Consumer Commission (ACCC) announced that it had issued infringement notices to two franchisors for allegedly breaching the Franchising Code of Conduct (“the Code”).
First Penalties for Non-Compliance with the Register
The fines – $16,500 each – were paid in June 2025 and mark the first penalties issued by the ACCC for a franchisor’s failure to confirm or update their information on the Australian Franchise Disclosure Register (“Register”) within the required timeframe.
The franchisors fined were:
- Cash Converters Pty Ltd – second-hand goods retailer and pawn broker
- Mobile Travel Agents Pty Ltd (MTA) – a well-known travel agency brand
What is the Franchise Disclosure Register?
The Register is an online, public resource maintained by the Australian Government’s Treasury Department. It provides critical information to help prospective franchisees make informed decisions before entering into a franchise agreement.
- Introduced in 2021
- Operational since November 2022
- Mandatory for all entities offering franchise agreements in Australia, including franchisors and master franchisees
Your Obligations as a Franchisor
As part of the re-made Code (effective 1 April 2025), franchisors must comply with the following obligations regarding the Register:
Under Section 93 of the Code, franchisors must annually:
- Confirm that existing Register information is correct,
OR - Update any incorrect, outdated, or missing information
Deadline:
On or before the 14th day of the fifth month after the end of your financial year
(For most Australian franchisors with a 30 June EOFY, this is 14 November.)
Failure to comply may result in a penalty of up to 600 penalty units – currently equivalent to $198,000.
Need help staying compliant? Our team offers franchise compliance advice to help you avoid these risks.
New Requirements from 1 April 2025
From 1 April 2025, franchisors must also include responses to two new questions on the Register – a detail that may have gone unnoticed by some.
The Register is free to search and clearly indicates whether a franchisor’s profile is up to date. This means non-compliance is easy to identify by both the ACCC and the public.
The Current State of Compliance
Following the ACCC’s action, the Franchise Advisory Centre reviewed the Register and reported:
- 24% of listings (496 out of 2,073) were marked as “out of date”
- That’s nearly one in four franchisors at risk of similar penalties
ACCC’s Message is Clear
ACCC Deputy Chair Mick Keogh stated:
“A franchisor’s failure to maintain up-to-date information on the Register undermines transparency for prospective franchisees, and the reliability and integrity of the Register.”
The ACCC further reinforced:
“One of the ACCC’s enduring compliance and enforcement priorities is to ensure that small businesses receive the protections of competition and consumer laws, including mandatory industry codes such as the Franchising Code of Conduct.”
To support this priority, the Government announced on 18 March 2025 that it will provide $7.1 million over two years (2025–26) to strengthen the ACCC’s enforcement of the Code.
Key Takeaways
- The ACCC is actively enforcing compliance with the Franchising Code of Conduct.
- Franchisors should urgently review their Register listing and update it if marked “out of date”.
- With the 2025 financial year now over, franchisors must:
- Update their disclosure document by 31 October 2025
- Update or confirm Register information by 14 November 2025
- Don’t forget to include the new required responses under the Code, effective from 1 November 2025.
Useful Links
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.
