Franchise disputes in Australia: how common they are and why estimates range from 0.2% to 33%

• ASBFEO: about 150 actively managed franchise disputes in the 12 months to June 2023, a rate of about 0.2% of franchisees.
• Franchisees (2023 survey, 381 responses): 126 reported a serious dispute in the previous 12 months, and only 12 of them said they resolved it effectively.
• Franchisors (Griffith survey, 2016): 25% had a dispute involving an outside adviser, and the survey estimated 1.8% of franchisees were in a substantial dispute.
• Trend: ASBFEO's new franchise disputes rose from 27 in the December quarter of 2023 to 68 in the June quarter of 2026.
• Awareness: about half of surveyed franchisees knew about ASBFEO's dispute service in 2023.

Each figure counts something different, from formal cases to a franchisee's own view of a 'serious dispute'.

• Different events: 0.2% counts disputes ASBFEO actively managed, 33% counts survey respondents who said they had a serious dispute, and 1.8% estimates franchisees in a substantial dispute from what franchisors reported.
• Different groups: the 0.2% is measured against all franchisees, the 33% against 381 people who chose to answer a survey, and the 1.8% is extrapolated from franchisors' answers about their own networks.
• Self-selection: the review named non-response bias as the main risk in its survey, and 173 of the 381 respondents were motor vehicle dealers.
• Awareness: only about 50% of surveyed franchisees knew about ASBFEO's dispute service, so many disputes never reach it.
• Early settlement: in Griffith's 2016 survey, 66% of the disputes franchisors reported were at the solicitor's letter stage, 20% in mediation and 7% in litigation.
• Scattered records: the review said dispute data is collected ad hoc, differs between jurisdictions and is often not published.
• Different years: the franchisor survey is from 2016, the franchisee survey from 2023, and ASBFEO's figures are quarterly.

ASBFEO publishes the number of new franchise disputes it manages each quarter. The March and December 2025 quarters are missing here because we couldn't retrieve those reports, and ASBFEO's wording changed in 2026 from 'actively case-managing' to disputes with 'a dedicated case manager'.

1. December quarter 2022: 57 new franchise disputes, as cited in ASBFEO's 2025 reports.
2. December quarter 2023: 27.
3. September quarter 2024: 35.
4. December quarter 2024: 32, of which franchisees started 28, plus 55 franchising enquiries.
5. June quarter 2025: 43, of which franchisees started 33, plus 105 enquiries. Franchise disputes were 11% of all ASBFEO's new case-managed disputes.
6. September quarter 2025: 48, of which franchisees started 36, plus 116 enquiries (11.5% of all new case-managed disputes).
7. March quarter 2026: 55, plus 135 enquiries (10.0% of all new case-managed disputes).
8. June quarter 2026: 68, plus 95 enquiries (9.2% of all new case-managed disputes).

ASBFEO says its figures reflect cases needing dedicated case management and should be read as indicators of observed patterns, not measures of overall prevalence.

• Exit, expiry and non-renewal. In the June quarter of 2026, ASBFEO highlighted disputes where a franchisee wanted to renew or sell to an identified buyer and the franchisor didn't agree, as well as franchisee-initiated exits before the end of the term.
• 'Take it or leave it' termination offers. In the March quarter of 2026, franchisees raised termination terms they considered unfavourable, often with little time to respond or get advice.
• Franchisor failure. In one March quarter 2026 case, a franchisee had paid nearly $100,000 in franchise fees before the franchisor ceased trading.
• Forced sales. ASBFEO helped a franchisee whose termination notice required them to sell the business within 60 days.
• Compliance, fees and communication. Franchisors in Griffith's 2016 survey (60 respondents) blamed system compliance (63%), fees (25%), communication (23%), profitability (13%) and misrepresentation (8%).
• Good faith, misleading conduct and disclosure. These are the top three issues franchisees raise with the ACCC.
• Industry mix. In the 2016 survey, non-food retail brands (34%) were more likely than food retail brands (13%) to report a dispute, with no significant difference by brand age or size.

• Mostly franchisees: they started 28 of 32 ASBFEO disputes in the December quarter of 2024, 33 of 43 in the June quarter of 2025 and 36 of 48 in the September quarter of 2025.
• Some industries more than others: wholesale trade, transport, postal and warehousing, and accommodation and food services accounted for nearly 60% of new franchise disputes in the June quarter of 2025.
• Owners from diverse language backgrounds: nearly a quarter of all ASBFEO's new case-managed disputes in the June quarter of 2025, across every dispute type, involved an owner who speaks a language other than English at home.
• Franchisees who go to the regulator: about 75% of the ACCC's franchising contacts come from franchisees.
• Franchisors as well: ASBFEO also helps franchisors understand their dispute resolution duties, and in the March quarter of 2026 it wrote to franchisors setting out their obligations under the Code.

1. Notice: the party with the complaint gives written notice under the complaint procedure the franchise agreement must contain.
2. Talks: the parties try to resolve it. If it isn't resolved within 21 days, either can refer it to mediation or conciliation.
3. Appointment: ASBFEO appoints a mediator within 14 days of a request. Sessions are held in Australia and can be virtual, and both parties must attend with someone able to settle.
4. Cost: costs are usually split equally. ASBFEO estimates a mediation at about $4,000, or $2,000 for each party.
5. Ending: either party can end the process after 30 days.
6. Arbitration: available only if both parties agree in writing, with ASBFEO appointing the arbitrator.
7. Naming: ASBFEO can publicise franchisors that refuse to take part in, or withdraw from, the process.
8. Court: either party can still go to court, although the Government has acknowledged that not everyone can afford legal action.

• Ask what percentage of franchisees were in mediation, conciliation or arbitration in the last financial year. Item 4 of the disclosure document must state it.
• Check whether the agreement offers arbitration. In FranchiseScope's analysis of Franchise Disclosure Register profiles (captured 19 August 2026), 63.8% of 921 answering said yes; the answers are self-reported by franchisors.
• Call former franchisees listed in item 6 and ask why they left and how disputes were handled.
• Read the renewal, exit, transfer and termination clauses closely, because end-of-term issues feature heavily in ASBFEO's recent reports.
• Get written answers to anything you were told verbally.
• Get independent legal advice, and keep records from the first conversation.