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Franchising Code of Conduct checklist

A new Franchising Code of Conduct (the Competition and Consumer (Industry Codes—Franchising) Regulations 2024) commenced on 1 April 2025, remaking and strengthening the previous Code. It is mandatory and enforced by the ACCC. This tool scores your compliance across 10 franchisor obligations and prioritises gaps by severity.

Last verified: 1 July 2026
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10 franchisor obligations

Pre-entry disclosure at least 14 days before signing

Disclosure document + Key Facts Sheet + a copy of the Code + the franchise agreement, given 14 days before the franchisee signs or pays a non-refundable amount.

Disclosure document updated annually

Updated within 4 months of the end of each financial year.

Registered on the Franchise Disclosure Register

Profile listed and kept current on the public franchisedisclosure.gov.au register.

14-day cooling-off period honoured

Franchisee can terminate within 14 days of signing or paying; payments refunded less reasonable costs.

Acts in good faith toward franchisees

Honest, cooperative dealing at every stage of the franchise relationship.

No unfair unilateral or retrospective variation

Changes to the franchise agreement follow the Code's limits on unilateral and retrospective variation.

Restraint-of-trade clauses meet the Code's conditions

Post-term restraints only relied on where the Code makes them enforceable.

Marketing fund held separately + reported annually

Contributions in a separate account, spent on legitimate marketing, with annual financial statements to franchisees.

Dispute resolution procedure in place

Internal complaint handling plus participation in ASBFEO mediation or arbitration when requested.

Franchisee-specific risks disclosed

Clear statements on earnings, capital expenditure and goodwill on termination.

Reference tool — not professional advice. The Franchising Code is detailed and its application depends on your specific arrangements. Always confirm with the ACCC or a franchising lawyer before signing or granting a franchise.

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Frequently asked questions

Who does the Franchising Code of Conduct apply to?
It is a mandatory industry code applying to franchisors, franchisees and prospective franchisees in most franchise arrangements in Australia. The compliance burden sits mainly with the franchisor, and the ACCC enforces the Code with civil penalties and infringement notices.
What changed under the new Code?
The Competition and Consumer (Industry Codes—Franchising) Regulations 2024 commenced on 1 April 2025, remaking and strengthening the previous Code. It carried over the core obligations — disclosure, cooling-off, good faith and dispute resolution — while increasing maximum penalties and expanding the ACCC's infringement-notice powers.
What is the 14-day disclosure rule?
A franchisor must give a prospective franchisee the disclosure document, the Key Facts Sheet, a copy of the Code and the franchise agreement at least 14 days before the franchisee signs the agreement or pays a non-refundable amount. The franchisee also has a 14-day cooling-off period after signing or paying.
What are the penalties for breaching the Code?
The ACCC can seek civil penalties for breaches of key provisions and issue infringement notices. Penalties were increased under the new Code, so franchisors carrying gaps against these obligations face material financial and reputational exposure.

Not sure which obligations apply to you?

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