Australian Consumer Law (ACL)
What it means
The Australian Consumer Law sits within the Competition and Consumer Act 2010 and applies to franchising in addition to the Franchising Code. It prohibits misleading or deceptive conduct and unconscionable conduct, protections that matter during the sales process when franchisors make representations.
The ACL also contains the unfair-contract-terms regime, which can render certain one-sided standard-form contract terms void, relevant because franchise agreements are typically standard-form contracts offered on a take-it-or-leave-it basis.
In practice
If a franchisor made claims during the sale that turned out to be misleading, or a standard-form term is grossly one-sided, the ACL, not just the Code, may give you a remedy. Keep every representation in writing.
A real example
A franchisee who was verbally promised a protected territory that the agreement did not deliver relies on the ACL's misleading-conduct provisions, alongside the Code, in a claim against the franchisor.
Australian Consumer Law (ACL), FAQs
Does consumer law apply to buying a franchise?
Yes. The Australian Consumer Law applies to franchising alongside the Franchising Code, covering misleading and unconscionable conduct and unfair contract terms.
What is unconscionable conduct in franchising?
Conduct by one party that is so harsh or against good conscience that the law intervenes. The ACL prohibits it, and it is often argued alongside the Code's good-faith obligation.
See the full franchise glossary, the Fee Index or our buyer guides.