It's Official: ACCC Issues First Major Penalty for Franchise Disclosure Register Breach

The Franchising Code of Conduct requires that a franchisor:

1. Upload the mandatory information in the Franchise Disclosure Register at least 14 days before entering into a franchise agreement;
2. Update that information on an annual basis.

We have not previously seen any penalties imposed for a failure to comply with a franchisor’s obligation. However, the ACCC has issued an infringement notice to a Harvey Norman franchisor in Queensland for failing to include the mandatory information on the Franchise Disclosure Register before entering into an agreement with a franchisee in July 2024.

This sends a clear message to the franchising sector that the ACCC is enforcing the obligation of franchisors.

The Franchise & Business Lawyers can assist you in complying with your obligations under the Franchising Code of Conduct. Contact us to ensure your franchise meets all regulatory requirements.