ACCC franchising enforcement, 2015 to 2026: the cases and the lessons
A decade of ACCC action shows two eras: large court penalties for misleading franchise sales, then a run of infringement notices for missed deadlines. This tracker lists the outcomes as the ACCC reported them and draws out the lessons.
Which franchisors has the ACCC fined?
- From 2015 to September 2023, the ACCC reported 15 public franchising enforcement outcomes: 3 infringement notices, 7 court cases and 5 court-enforceable undertakings, plus 54 compliance checks using compulsory notices.
- Paying an infringement notice isn't an admission, and many outcomes below are described as alleged contraventions.
- On 18 March 2025 the Government announced $7.1 million over two years for ACCC franchising enforcement: $4.156 million in 2025–26 and $2.895 million in 2026–27.
- The ACCC has kept the Franchise Disclosure Register since October 2025, as well as enforcing the Code.
- Protecting small business under industry codes is a standing ACCC priority, and its 2026–27 priorities include unfair contract terms.
The biggest court outcomes
- Jump Loops Pty Ltd (in liquidation), 2021: ordered to pay $23 million in penalties for false or misleading representations and wrongly accepting payments from franchisees, over representations that they would have an operational swim school within 12 months of signing. Most never received one.
- Geowash Pty Ltd, 2019: $4.2 million in penalties against Geowash, its director and its franchising manager for false or misleading representations and failing to act in good faith in selling and marketing its franchises, in breach of the Code and the Australian Consumer Law.
- SensaSlim Australia Pty Ltd (in liquidation), 2016: a $3.55 million penalty for misleading and deceptive conduct and false representations, for conduct before the Code was remade in 2015.
- Ultra Tune Australia, 2019: penalties for breaching the Code and the Australian Consumer Law in dealings with a prospective franchisee. The Full Federal Court upheld the finding that its marketing fund statements lacked sufficient detail, but cut the penalty from $2.6 million to $2 million.
- Megasave Couriers Australia, 2021: after admitting liability by consent in March 2021, it was ordered on 29 April 2021 to pay $1.9 million, its sole director $120,000, and both $500,000 in partial redress to franchisees, over false or misleading claims of guaranteed minimum weekly payments and annual income.
- Retail Food Group, December 2022: settled ACCC proceedings with a court-enforceable undertaking worth about $10 million, including $5 million to Michel's Patisserie franchisees who paid into that brand's marketing fund between 1 July 2012 and 30 June 2017.
Contempt: Ultra Tune's $1.5 million fine
- In March 2024 the Federal Court fined Ultra Tune $1.5 million for contempt of court, the highest fine in a contempt case brought by the ACCC.
- The contempts breached the 2019 orders: one late disclosure document update, two late marketing fund statements, one almost 8 months late, and a compliance officer who didn't give quarterly reports for three consecutive quarters.
- The Court ordered costs on the indemnity basis, the higher scale.
- The Full Federal Court dismissed Ultra Tune's appeal on 28 January 2025 and awarded the ACCC its costs.
- The lesson: once a court has ordered compliance, a routine missed deadline can become contempt.
Infringement notices and negotiated outcomes, 2022 to 2026
- October 2022: Jim's Group paid $24,420 across two notices after the ACCC alleged its disclosure document understated former franchisees in its Dog Wash division and that it misrepresented cooling-off rights.
- December 2023: Delicia Franchising paid an $11,100 notice and gave a court-enforceable undertaking, admitting its 2020 to 2022 marketing fund statements lacked detail and weren't given to franchisees within 30 days. The undertaking included a corrective notice and a 3-year compliance program.
- June 2025: Cash Converters and Mobile Travel Agents paid $16,500 each over alleged failures to annually update or confirm their Register information, the ACCC's first notices for that obligation.
- August 2025: HN Macgregor Franchisor, a Harvey Norman franchisor, paid $15,650 over allegedly missing Register information before a July 2024 agreement.
- March 2026: Luxottica Franchising Australia, franchisor of OPSM and Laubman & Pank, paid $19,800 after acknowledging it missed its May 2025 Register update.
- August 2026: Venue Smart paid $59,400 across three notices under the 2024 Code, over an alleged missing 2024–25 marketing fund statement, no separate fund bank account and late Register information.
- September 2026: after ACCC concerns about unfair contract terms, an unnamed fitness franchisor narrowed its restraints, lowered late-payment interest, removed early termination fees and corrected false claims about the NDIS.
Unfair contract terms: the next front
- From July 2023 the ACCC checked the agreements of 10 newer franchisors with fewer than 40 franchisees each. Every agreement had potentially unfair terms, and 9 of the 10 franchisors were on the Register.
- The terms flagged included one-sided variation, set-off, audit powers, restraints and termination clauses.
- Since 9 November 2023, unfair contract terms can attract penalties of up to the greatest of $50 million, 3 times the benefit or 30% of adjusted turnover.
- In December 2023 the ACCC warned franchisors to remove unfair terms or risk legal action.
- Its 2026–27 priorities include unfair contract terms, with a focus on cancellation, auto-renewal and early termination fees.
Patterns and lessons
- Pre-sale claims draw the biggest penalties: the Jump Loops, Geowash and Megasave cases turned on timelines, revenue and profit claims, and guaranteed income promised before signing.
- Deadlines are the easiest breaches to prove: Register confirmations, fund statements and disclosure updates all have fixed dates.
- Marketing funds keep recurring: Ultra Tune in 2019, Retail Food Group in 2022, Delicia in 2023 and Venue Smart in 2026.
- Directors aren't shielded: Geowash's director and Megasave's sole director were penalised personally.
- Court wins don't guarantee compensation: the ACCC has noted Geowash's franchisees received no financial redress after its director and franchising manager declared bankruptcy.
- Court orders raise the stakes: Ultra Tune's routine misses became contempt.
- Enforcement is resourced: the ACCC received dedicated funding from 2025–26 and now runs the Register it enforces.
For buyers: how to check a franchisor's enforcement record
- Read item 4 of the disclosure document: current proceedings, convictions, judgments, insolvency, and the percentage of franchisees in mediation, conciliation or arbitration last year.
- Check the Register's integrity answers for the franchisor, its associates and their directors.
- Search the ACCC's media releases and infringement notices register for the franchisor's name and any related company names.
- Ask whether the franchisor or an associate has given the ACCC a court-enforceable undertaking; the disclosure rules and s34 require these to be disclosed.
- Ask former franchisees about disputes or contact with regulators.
- Have a franchise lawyer interpret anything you find before you sign.
Checklist: lessons for franchisors
- Every pre-sale claim about earnings, timelines or income is backed by documents you keep (s37(2)).
- A compliance calendar covers fund statements, disclosure updates and Register confirmations, set from your own financial year end.
- Fund money is held in a separate account and spent only on permitted items.
- Former franchisee details in the disclosure document are complete and current.
- Agreement templates have been reviewed for unfair contract terms since the November 2023 penalty increase.
- Any court order or undertaking has a named owner and a reporting calendar.
- Directors understand they can be personally exposed.
Sources
- ACCC: Submission to the Franchising Code of Conduct review (September 2023)
- ACCC: Ultra Tune fined $1.5 million for contempt of court (1 March 2024)
- ACCC: Megasave and Gary Bourne to pay penalties for misleading prospective franchisees (29 April 2021)
- ACCC: Cash Converters and Mobile Travel Agents pay penalties for allegedly breaching Franchising Code of Conduct (26 June 2025)
- ACCC: Venue Smart pays penalties over alleged contraventions of the Franchising Code (3 August 2026)
- ACCC: Franchisors warned to remove unfair contract terms or risk legal action (15 December 2023)
- ACCC: Unfair contract terms used in franchise agreements (1 September 2026)
- Treasury: Portfolio Budget Statements 2025–26, Treasury portfolio (ACCC funding)
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Frequently asked questions
What is the biggest penalty the ACCC has won against a franchisor?
Among its franchising outcomes since 2015, the largest is Jump Loops, ordered in 2021 to pay $23 million in penalties for false or misleading representations and wrongly accepting payments from franchisees, over promises of an operational swim school within 12 months of signing. The ACCC says most of those franchisees never received one.
How often does the ACCC take action against franchisors?
From 2015 to September 2023 it reported 15 public franchising enforcement outcomes: 3 infringement notices, 7 court cases and 5 court-enforceable undertakings, plus 54 compliance checks using compulsory notices. Since then it has announced a run of notices, including five over alleged Register failures between June 2025 and August 2026.
Does paying an infringement notice mean the franchisor broke the law?
No. Under the Competition and Consumer Act, a franchisor that pays isn't regarded, merely because of the payment, as having contravened the Code, and the ACCC's releases describe the conduct as alleged. Treat a paid notice as a reason to ask questions, and check whether the problem, such as a missed Register update, has been fixed.
What was the Ultra Tune contempt case about?
In March 2024 the Federal Court fined Ultra Tune $1.5 million, the highest fine in an ACCC contempt case, for breaching 2019 court orders: one late disclosure document update, two late marketing fund statements and missed compliance reporting. It also ordered indemnity costs. The Full Federal Court dismissed Ultra Tune's appeal on 28 January 2025.
Can franchisees get compensation from ACCC action?
Sometimes. Courts can order redress, as in Megasave, where $500,000 in partial redress was ordered in 2021, and undertakings can include payments, such as Retail Food Group's $5 million to Michel's Patisserie franchisees. But redress can fail: the ACCC noted Geowash's franchisees received none after its director and franchising manager declared bankruptcy.
How is the ACCC funded to enforce the Franchising Code?
On 18 March 2025 the Government announced $7.1 million over two years to strengthen ACCC enforcement of the Franchising Code. Treasury's 2025–26 budget papers show $4.156 million in 2025–26 and $2.895 million in 2026–27, under the Small Business and Franchisee Support and Protection measure.
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