Can a franchisor change the franchise agreement? What it can change and what it must disclose

• In the ACCC's 2023 review of 10 franchise agreements, all 10 let the franchisor vary terms one-sidedly; 7 allowed changes to the operations manual and 7 to approved product or supplier lists.
• Of 1,142 Franchise Disclosure Register profiles that answered the question, 315 (27.6%) said the franchisor can vary the agreement unilaterally (FranchiseScope analysis of profiles captured 19 August 2026, self-reported by franchisors).
• A backdated change needs your written consent, and breaching that rule can attract up to 600 penalty units (s62).
• A change before you sign restarts the 14-day consideration period unless it is minor (s23).
• A material change to your terms, rights or liabilities counts as extending the agreement's scope, which triggers the pre-extension steps and can move an older agreement onto the current Code (s6, s23 and s97).

• A variation clause that lets the franchisor change specified parts of the agreement, often at its discretion.
• The operations manual. The ACCC's model disclosure guidance says a unilateral variation may include a change to the manual, where the agreement requires you to comply with a manual that can change at any time.
• Approved product and supplier lists, which are often set out in the manual.
• Fee clauses. The ACCC's 2023 review found one-sided variation clauses covering fees, performance targets, intellectual property, and store layout and fit-out.
• A deed of variation that you both sign, which needs your agreement.
• A new agreement at renewal or transfer. The franchisor may offer its current template rather than your existing terms, and the disclosure document must say whether it will amend the agreement on a transfer (item 19).

• No backdating without your written consent (s62), with a civil penalty of up to 600 penalty units.
• Disclosure of one-sided changes: the circumstances in which the franchisor unilaterally varied an agreement in the last 3 financial years, other than minor variations, and when it may do so in future (item 17).
• Register disclosure: the franchisor's Franchise Disclosure Register profile must say whether the agreement may be varied unilaterally.
• Changes before signing: the changed agreement must be given to you and the 14 days restart, unless the change is one of the minor kinds listed in s23(7).
• Good faith: a franchisor can't include a term, or incorporate a document such as a manual, that limits or excludes the obligation to act in good faith (s18(4) and (5)).
• Capital spending: a change can't be used to impose significant capital expenditure outside the four routes in s60.
• Extension of scope: a material change to terms, rights or liabilities is an extension of scope under s6, which triggers the pre-extension disclosure and 14-day wait in s23 and the signed statement in s26.

Many franchise agreements are standard form small business contracts under the Australian Consumer Law, and since 9 November 2023 proposing or relying on an unfair term in one can attract penalties. In its December 2023 review, the ACCC said variation clauses are particularly concerning when:

• They give the franchisor an unconstrained ability to vary key aspects of the agreement.
• You get little or no prior notice. Four agreements made manual changes effective 7 days or less after notice, and one required changes within 48 hours.
• You can't exit without financial detriment if you disagree with, or can't implement, the change.
• Failing to implement a change is a breach that can lead to termination, as it was in every agreement reviewed.
• Changes to supplier lists aren't limited to set circumstances, need no reasonable notice, or stop you selling stock you already bought.
• The Australian Consumer Law itself lists a term that lets one party, but not another, vary the contract as an example of a term that may be unfair (s25(d)).

FranchiseScope analysed 1,187 Franchise Disclosure Register profiles captured on 19 August 2026. The figures are self-reported by franchisors and show whether an agreement allows one-sided change, not how often it happens.

• All categories: 315 of 1,142 profiles that answered (27.6%) said the franchisor may vary the agreement unilaterally.
• Fitness: 44 of 122 (36.1%).
• Bakery and dessert: 16 of 47 (34.0%).
• Quick-service food: 57 of 200 (28.5%).
• Real estate: 8 of 49 (16.3%).
• Pet services: 2 of 14 (14.3%).
• The ACCC found variation clauses in every agreement it reviewed in 2023, so treat a 'No' on the Register with care and read the agreement's manual and supplier clauses too.

1. Ask which clause the franchisor relies on, and read it together with the agreement's definition of the operations manual.
2. Check the notice period and the implementation deadline, and ask in writing for more time if it is unreasonable.
3. Check whether the change reaches back in time, such as a fee increase applied to past months. That needs your written consent (s62).
4. Work out the cost. If it involves significant capital expenditure, the four routes in s60 apply.
5. Talk to other franchisees. The Code protects your right to associate (s64), and franchisees with similar disputes can resolve them together (s73).
6. If you disagree, use the complaints process: written notice, 21 days to try to agree, then mediation or conciliation, with a mediator appointed by ASBFEO if needed (s72).
7. If you think the clause is unfair, get legal advice and consider reporting it to the ACCC.

• Agreements still under the 2014 Code are covered by its clause 31A, which also bans backdated changes without your written consent.
• Under the 2014 Code's transitional rules, clause 31A applies only to agreements entered into, extended or renewed from 1 July 2021.
• Clause 31A carried no civil penalty. The current s62 carries up to 600 penalty units.
• Unfair contract terms law applies separately. The prohibitions and penalties apply to contracts entered into or renewed, and to terms varied, from 9 November 2023.
• Before 9 November 2023, an unfair term in a standard form small business contract could be declared void, but no penalties applied.

• Which parts of the agreement can the franchisor change without your consent?
• Can it change fees, territory, supplier lists or the operations manual, and within what limits?
• How much written notice must it give, and how long do you get to implement a change?
• Who pays the cost of implementing changes?
• Can you exit without penalty if a change would materially harm your business?
• What does item 17 of the disclosure document say about changes in the last 3 financial years?
• Does the Register profile say the agreement can be varied unilaterally, and does that match the agreement?