Compliance & disputes

Collective bargaining (by franchisees)

Where franchisees join together to negotiate as a group with their franchisor, for example on pricing or terms, which can be permitted under ACCC arrangements.

What it means

Individually, a single franchisee has limited bargaining power against a franchisor. Collective bargaining lets franchisees negotiate together as a group, which can produce fairer outcomes on shared issues like supplier pricing or common contract terms.

Because coordinating between businesses can raise competition-law issues, the ACCC provides pathways, such as class exemptions or authorisations, that allow eligible small businesses, including franchisees, to bargain collectively without breaching competition law.

In practice

If franchisees in your network share a common concern, a franchise advisory council or a formal collective-bargaining group can carry more weight than individual complaints. Check the ACCC's collective-bargaining class exemption for eligibility.

A real example

Franchisees in a fuel network use the ACCC's collective-bargaining class exemption to negotiate jointly with the franchisor over a new point-of-sale system, securing a lower per-site cost than any could alone.

Collective bargaining (by franchisees), FAQs

Are franchisees allowed to negotiate as a group?

Yes, in many cases. The ACCC provides collective-bargaining arrangements, such as a class exemption, that let eligible small businesses, including franchisees, negotiate together without breaching competition law.

How is collective bargaining different from a franchise advisory council?

An advisory council is a consultative body; collective bargaining is franchisees formally negotiating terms as a group. The two can work together.

See the full franchise glossary, the Fee Index or our buyer guides.