Franchising Code compliance: a franchisor's checklist
The Franchising Code is not optional, and breaches carry civil penalties the ACCC can pursue. This is the plain-English checklist of what a compliant franchisor actually has to do.
What does the Franchising Code require of franchisors?
Compliance is not a one-off, it is an annual cycle. Use the checklist below as a starting point, not a substitute for legal advice.
Before you sign a franchisee
- Give the Information Statement as soon as someone becomes a prospective franchisee.
- Provide the disclosure document, the proposed agreement and a copy of the Code, then wait at least 14 days before signing, and refund any payment made in that window within 14 days of a written request.
- Do not pressure a franchisee to sign early or to backdate their acknowledgement of receipt.
- Respect the 14-day cooling-off period after signing (and the limited, condition-based waiver rules).
- Only make earnings or financial-performance representations that have a reasonable basis and the required accuracy statements, the ACCC actively pursues misleading income claims.
Your ongoing obligations
- Keep the disclosure document current and update the Franchise Disclosure Register profile, including the annual confirmation.
- Administer any marketing or specific-purpose fund separately, spend it only on its stated purpose, and give franchisees an annual financial statement (rules strengthened from 1 November 2025).
- Do not pass on costs the Code prohibits passing on, and disclose supply restrictions and supplier rebates.
- Tell franchisees of materially relevant facts, generally within 14 days.
- Act in good faith in every dealing, including variations, renewals, transfers and disputes.
- Keep records for six years.
Endings, transfers and disputes
- Follow the Code's rules on ending an agreement, including any compensation owed where you withdraw from the market or rationalise the network.
- Handle transfer and renewal requests properly, and give the required renewal notice.
- Engage in the Code's dispute process (notice of dispute, then mediation, conciliation or agreed arbitration) in good faith.
Why compliance is commercial, not just legal
Beyond avoiding penalties, compliance is how you attract good franchisees. Buyers and their lawyers read your disclosure document and register entry closely; a clean, current, well-run compliance record signals a professional franchisor worth joining. On FranchiseScope, that record is part of what a prospective franchisee sees.
- The 1 November 2025 Franchising Code changes: a franchisor's transition checklist10 min
- The pre-signing capex conversation (s47): how to run it and prove it happened8 min
- The franchise information statement: meeting the 7-day deadline8 min
- Materially relevant facts: the 14-day notice rule with a $10 million penalty tier8 min
- Franchisor record keeping: the 6-year rules and the ACCC's 21-day document demand8 min
- Franchising Code penalties in 2026: $218,400 per breach and the $10 million tier9 min
- ACCC infringement notices for franchisors: how they work and how to respond8 min
- Ultra Tune's $1.5 million contempt fine: what court-ordered compliance demands8 min
- How to franchise your business in Australia10 min
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Frequently asked questions
What happens if a franchisor breaches the Code?
Many Code obligations carry civil penalties the ACCC can seek through the courts, and reforms have increased the maximums. Franchisees may also have remedies under the Code and the Australian Consumer Law.
How often must a franchisor update disclosure?
The disclosure document must be kept current and confirmed annually, and the Franchise Disclosure Register profile confirmed by the 14th day of the fifth month after the financial year end. Materially relevant facts must generally be disclosed within 14 days.
Can a franchisor make earnings claims?
Only with a reasonable basis and the accuracy statements the Code requires. The ACCC actively pursues misleading or unsupported income representations, so many franchisors choose not to make them at all.
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