Who must comply with Franchising Code of Conduct (mandatory industry code)?
The applicability test for Franchising Code of Conduct (mandatory industry code) (ACCC), computed across 35 industries, 9 business structures and 6 size bands.
Short answer: Only if
Applies only if you are a franchisor or franchisee. Whether it applies turns on a fact that no industry, structure or size settles on its own.
What the obligation is
Mandatory Code regulating franchise sale, disclosure, dispute resolution.
Franchising Code of Conduct under CCA Pt IVB. Pre-disclosure document; good faith obligation; cooling-off + dispute resolution; restrictions on changes + termination. Substantial reform package commenced 1 April 2025 strengthening franchisee protections.
The applicability test
Applies only if you are a franchisor or franchisee. Whether it applies turns on a fact that no industry, structure or size settles on its own.
How the regulator frames it: Franchisors + franchisees.
What triggers it: Franchise relationship.
Jurisdiction: Commonwealth law, so the test is the same in every state and territory.
Which industries are in or out
Outcome across the 35 industries Rules Mate maps (3 of 35: only if a further fact applies; 32 of 35: no).
| Industry | Answer |
|---|---|
| Cafés & restaurants | Only if a further fact applies |
| Hotels, pubs & licensed venues | Only if a further fact applies |
| Retail trade | Only if a further fact applies |
| No | 32 other industries |
Business structure and size
Structure does not change the answer in the 3 industries it can reach: for every structure the answer is "only if a further fact applies".
Size does not change the answer in the 3 industries it can reach: at every size band the answer is "only if a further fact applies".
Worked examples
Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:
- Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: does not apply. Requires a trigger outside this questionnaire.
- Pty Ltd company in cafés & restaurants with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if you are a franchisor or franchisee.
When you need to check further
The engine shows this obligation as "check whether this applies" when a business has industry: Cafés & restaurants / Hotels, pubs & licensed venues or industry: Retail trade. It then applies only if you are a franchisor or franchisee. That fact is not something Rules Mate can infer from industry, structure or size.
What you must do, and when
- When due
- Continuous; disclosure annual + before sale.
- Frequency
- Ongoing
- Evidence to keep
- Disclosure document; franchise agreements; complaint records.
- Status
- Current
- Priority
- Critical
Penalty for not complying
Maximum penalty: Civil penalties up to ~$10M + 3× benefit.
Audit or assurance level
Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.
Where it sits in the corpus
Rules Mate tracks 4 published obligations tagged "competition", 3 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated critical priority, and is an ongoing duty.
Regulator, legislation and tools
Regulated by Australian Competition and Consumer Commission.
ACCC: Competition and consumer regulator administering the Competition and Consumer Act 2010 and Australian Consumer Law, plus industry codes and infrastructure access regimes.
CCA: Australia's competition + consumer protection law.
Free tools that help with this obligation:
Questions
- Who must comply with Franchising Code of Conduct (mandatory industry code)?
- Applies only if you are a franchisor or franchisee. Whether it applies turns on a fact that no industry, structure or size settles on its own.
- Does Franchising Code of Conduct (mandatory industry code) apply to sole traders?
- Only if a further fact applies. Looking in the 3 industries it can reach and every size band, the engine's answer for a sole trader is: only if a further fact applies.
- Does Franchising Code of Conduct (mandatory industry code) apply to businesses with 1–5 employees?
- Only if a further fact applies (1–5 employees, turnover $100K–$1M).
- When is "Franchising Code of Conduct (mandatory industry code)" due?
- Continuous; disclosure annual + before sale.
Related
Sources
Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.