Former franchisee contacts: churn tables, contact details and the 14-day privacy notice

• Phone numbers and email addresses were added to the former franchisee details when the current Code began on 1 April 2025.
• A separate document must also show whether your proposed site or territory had a previous franchisee in the last 10 years, and why they stopped (item 13(2) and (4)).
• The ACCC says giving only a former franchisee's old business phone number and business email is unlikely to be enough.
• Disclosing details without the notice, or trying to influence a former franchisee's choice, can each attract up to 600 penalty units: $218,400 for conduct from 1 July 2026.
• In 2019 the ACCC found about 1 in 3 of 12 food franchisors it checked didn't consistently give useful contact details for former franchisees; only 4 of 12 gave a personal email or mobile.

Item 6(4) asks for the number of franchised businesses where each of these events happened, in each of the last 3 financial years. One business can be counted under more than one event.

1. The franchise was transferred (item 6(4)(a)).
2. The franchised business ceased to operate (item 6(4)(b)).
3. The franchisor terminated the agreement (item 6(4)(c)).
4. The franchisee terminated the agreement (item 6(4)(d)).
5. The agreement was not extended (item 6(4)(e)).
6. The franchisor bought the business back (item 6(4)(f)).
7. The agreement was terminated and the franchisor acquired the business (item 6(4)(g)).

Item 6 also covers current franchisees: counts by state, territory or region, plus each franchisee's business address, business phone and start year. Systems with more than 50 franchises can limit that list to the state, territory, region or metropolitan area where your franchise will operate (item 6(1) to (3)).

• For each event involving a former franchisee: name, location, telephone number and email address, if the information is available (item 6(5)).
• The ACCC's model disclosure document guidance says a former business phone number and business email are unlikely to be sufficient, because those people no longer run the franchise.
• The details must be included unless the former franchisee has made a written request under s63 not to be disclosed.
• Transfers count. A franchisee who sold their business is a former franchisee for the event in item 6(4)(a).
• Every event in the table that involves a former franchisee should have a matching entry, unless the details aren't available or the person has opted out.
• In October 2022, Jim's Group paid $24,420 across two infringement notices. The ACCC alleged its disclosure document significantly understated the number of former franchisees in its Dog Wash division and didn't give their contact details, and that it misrepresented cooling-off rights. Paying isn't an admission.

1. When a franchisee leaves by transfer, termination, closure, non-extension or buy-back, write to them explaining that their details may be given to prospective franchisees and that they can ask, in writing, for their personal information not to be disclosed (s63(1)(a) and (2)).
2. Wait at least 14 days after giving that notice before disclosing their details to any prospective franchisee (s63(1)(a)).
3. If they send a written request, keep their personal information out of what you give prospects (s63(1)(b)). The event itself still goes in the item 6(4) count.
4. Don't try to influence the decision either way. Conduct intended to influence a former franchisee to make, or not make, a request is a separate breach (s63(3)), so keep exit deeds and settlement talks clear of it.
5. Send the notice to personal contact details as well as business ones, because business email accounts often close when a franchisee leaves.
6. Record the date, method and wording of each notice and any request received, and keep them with your Code records for at least 6 years.
7. Refresh contact details before each annual update, and remove anyone who has since asked not to be listed.

• Item 13(2): whether the site or territory being offered was operated under a previous franchise granted by the franchisor in the previous 10 years, with details, including the circumstances in which the previous franchisee stopped operating.
• The ACCC's guidance says this should include the former franchisees' names, the year they stopped and the reason.
• Item 13(3): whether the franchisor or an associate has an interest in the lease for the site, such as landlord or head lessee.
• Items 13(2) and 13(3) must be in a separate document given with the disclosure document (item 13(4)), and the ACCC suggests listing it in the table of contents.
• Item 13(1) also asks for the franchisor's policy for selecting sites or territories.

1. Add up the item 6(4) events for each year and compare them with the number of franchised businesses in item 6(1). Treat it as a rough guide, because one business can be counted twice.
2. Read the item 13 history for your site. The ACCC's information statement warns that a site with many owners may be in an unsuitable location, known as churning.
3. Check system-wide turnover too. The same statement says high turnover across a system can mean it expanded too quickly or without a plan, known as burning.
4. Call a spread of former franchisees: people who sold, closed, were terminated and chose to leave.
5. Call current franchisees as well, and compare the two groups' answers.
6. If numbers don't connect or emails bounce, ask the franchisor in writing for current details. The ACCC's advice to buyers has been to walk away if you can't easily contact former franchisees.
7. Write down what each person told you and share it with your lawyer and accountant.

• Why did you leave, and was it your choice?
• Were any earnings or profit expectations you were given met? The ACCC suggests asking former franchisees exactly this.
• Were fees, supplier prices and fund contributions what the disclosure document said?
• How did the franchisor handle the end: renewal, sale, termination or closure?
• Did you receive anything for your goodwill when you left? The ACCC notes franchisors generally don't pay for goodwill at the end of an agreement.
• Did you have a dispute, and how was it resolved?
• What support did you get when trading was hard?
• Would you buy this franchise again, knowing what you know now?

• Former franchisee entries with only old business numbers or generic emails.
• Churn events in the table with no matching names and no explanation.
• Several transfers of the same site or territory within a few years.
• No separate item 13 document, or one that doesn't say why previous franchisees stopped.
• A franchisor that discourages you from calling former franchisees.
• Big differences between what former and current franchisees tell you.

• Churn counts for the last 3 financial years reconcile to your franchisee records.
• Every event involving a former franchisee has a name, location, phone number and email, unless it isn't available or the person has opted out.
• s63 notices go out at exit, with a diary note 14 days later before any disclosure.
• No exit deed or conversation tries to influence the opt-out decision.
• An item 13 site history is prepared, as a separate document, for each site or territory you offer.
• Contact details are refreshed at every annual update.