The new Franchising Code of Conduct began on 1 April 2025. Some rules applied immediately, while others became mandatory from 1 November 2025. If your documents were prepared before these dates, review them now.
The Franchising Code of Conduct is a mandatory industry code in Australia. It sets out how franchisors and franchisees must work together, what needs to be disclosed, and is enforced by the ACCC. The latest version replaced the old code on 1 April 2025.
The new Code applies to Franchise Agreements that began, were transferred, renewed, or extended on or after 1 April 2025. Agreements made before this date do not need to be changed. Additional rules became mandatory on 1 November 2025.
Franchisors had from April to November to update their documents. This transition period has now ended.
Agreements made before April 2025 still follow the old Code, so franchisors may need two Disclosure Documents: one for the old Code and one for the new. However, the ACCC will accept a single updated document that meets the new Code.
Franchisors no longer need to provide a separate Key Facts Sheet. You do not have to keep it updated, and it can no longer be uploaded to the Franchise Disclosure Register.
This change may be unexpected if you follow older guidance. Many franchising resources published before 2025 still recommend preparing a Key Facts Sheet, but that advice is now out of date.
You still need to give an Information Statement. Franchisors must provide it within seven days after a prospective franchisee applies or shows interest in buying a franchise.
The Information Statement is a standard ACCC document designed to help a prospective franchisee understand what franchising involves, the risks, what research they should do and what questions they should ask before buying a franchise.
It must be provided to a prospective franchisee within 7 days of them expressing an interest in the franchise.
The main changes are more detailed disclosure about significant capital spending and Specific Purpose Funds, a rule to give franchisees a fair chance to earn a return on their investment, new compensation rules for early termination, and new limits on restraint of trade clauses.
Franchisors must inform franchisees about any major spending they may need to make and discuss it with them. From 1 November 2025, the Disclosure Document must explain the reason, amount, timing, type, expected results, benefits, and risks of this spending.
If franchisees pay into a fund for a set purpose, such as marketing, cooperative, IT, or conference funds, there are extra rules and disclosures. Franchisors must prepare a financial statement showing all income and expenses from the fund for the last financial year.
Franchise Agreements must give franchisees a fair chance to earn back the money they invest. This is a real obligation, not just a disclosure rule, and it affects how you set fees and capital requirements.
Franchise Agreements must include compensation for the franchisee if the franchisor ends the agreement early in certain situations.
Franchise Agreements cannot include a restraint of trade clause in some cases where the agreement ends, and the franchisee had an option to renew or extend.
Most rules under the new Code now carry civil penalties of up to 600 penalty units. Not disclosing required information or making false statements can result in fines, court penalties, and action from the ACCC.
The ACCC is now more active in making sure franchisors follow the rules, especially with Disclosure Document updates and the Franchise Disclosure Register. This area now carries more risk than under the old Code.
Franchisors need to review and update their Disclosure Document at least once a year, and also during the year if there are major changes. The timing depends on whether the agreements started before or after 1 April 2025.
| Agreements | Annual update deadline |
|---|---|
| Entered into before 1 April 2025 | Within four months after the end of the franchisor's financial year |
| Entered into on or after 1 April 2025 | Within four months of the start of the franchisor's financial year |
Franchisors must also keep their disclosure and supporting documents for at least six years and make sure their information on the Franchise Disclosure Register is confirmed or updated.
If you already run a franchise, get your Disclosure Document and Franchise Agreement checked to make sure they meet the new Code. If you are starting to franchise, make sure your documents are based on the new Code, not old templates from before 2025.
No. The requirement to provide a separate Key Facts Sheet was removed under the new Code, and the ACCC has said franchisors no longer need to maintain or update one. It can no longer be uploaded to the Franchise Disclosure Register.
Agreements entered into, transferred, renewed, or extended before 1 April 2025 do not need to be updated. If an existing agreement is transferred, renewed, or extended on or after that date, it must comply with the new Code.
The new Code commenced on 1 April 2025. Some obligations applied from that date; others became mandatory from 1 November 2025 after a transition period.
A fund franchisees contribute to for a defined purpose, such as marketing, cooperative, IT, or conference funds. The new Code adds disclosure and reporting obligations where these exist, including annual financial statements of income and expenses.
At least once each year, and during the year if there are material changes. The deadline is within four months of the relevant point in your financial year, depending on when the agreements were entered into.
This page summarises the Franchising Code of Conduct as we understand it and is general information, not legal advice. The Code is detailed and how it applies depends on your circumstances. For advice on your own obligations, speak to a lawyer experienced in franchising. The ACCC also publishes its own guidance on the changes to the Code, and we recommend reading it directly.
We work with franchise lawyers to make sure our clients' documents reflect current obligations. If you are preparing to franchise, start with the free assessment.
