The new Franchising Code of Conduct has been in force since 1 April 2025. For franchisors with a 30 June year-end, this spring is the first annual compliance cycle run wholly under the new rules, and the ACCC is making it clear it is watching the basics.
None of the recent enforcement action involves complex misconduct. It is about paperwork, deadlines and contract terms. That is good news: these are problems any well-run franchisor can avoid.
What the ACCC has been acting on
Sharetea (announced 2 November 2026). The ACCC announced that Sharetea paid $39,600 in penalties after two infringement notices. The regulator alleged its franchise agreements required franchisees to pay costs Sharetea incurred settling disputes with franchisees. Sharetea also agreed to amend other terms the ACCC raised concerns about.
Venue Smart (July 2026). The ACCC’s public infringement notices register lists three notices issued to Venue Smart on 17 July 2026, including under the Code’s provisions on specific purpose fund financial statements and payments into those funds.
OPSM and Laubman & Pank (March 2026). Their franchisor, Luxottica Franchising Australia, paid $19,800 after the ACCC alleged it failed to keep its Franchise Disclosure Register profile up to date.
The pattern is clear. Marketing and other specific purpose funds, the disclosure register and agreement templates are where the regulator is looking first.
The annual rhythm
The ACCC’s guidance sets out the yearly obligations. For a franchisor with a 30 June financial year:
- Within 3 months of year-end (by 30 September): contributors to each specific purpose fund (marketing, IT, conference and similar funds) can vote on whether to skip the audit. It takes 75% of contributing franchisees to opt out.
- Within 4 months of year-end (by 31 October): each fund’s financial statement prepared and, unless franchisees voted otherwise, audited. These fund rules apply from 1 November 2025. MST Lawyers notes the annual disclosure document update falls in the same window.
- Within 30 days: the statement goes to franchisees after it is prepared, and the audit report within 30 days of receiving it.
- Before 14 November: update or confirm your profile on the Franchise Disclosure Register.
If this year’s register update is not done, do it now, and put next year’s date in the diary today.
Our practical take
1. Treat fund money like someone else’s money, because it is. Specific purpose funds need their own account, an annual statement and timely reporting. Franchisees who can see where their contributions go are far less likely to escalate a complaint.
2. Put the register on the compliance calendar. It is a short task with a fixed date, and it has already produced penalties. Give one person ownership of it, with a backup.
3. Re-read your agreement template. Clauses that shift your dispute costs, legal fees or other franchisor expenses onto franchisees deserve a fresh look against the new Code. Templates drafted before April 2025 are the place to start.
4. Build one annual compliance timeline. The deadlines run off your financial year-end, so they are predictable. Map them once (fund vote, statements, audit, disclosure update, register) and work back from each.
5. If you are buying in, ask. Prospective franchisees should check the brand’s register profile and ask for the latest fund statements. A franchisor that answers quickly and clearly is telling you something about how it runs.
The bottom line
The new Code rewards franchisors who run compliance as a routine, not a scramble. The recent penalties are modest, but they are public, and in franchising, reputation drives recruitment.
This article is general information, not legal advice. Speak to a franchise lawyer about your own obligations.
Talk to dealfranchise about getting your franchise systems and compliance calendar in order.
Sources
- ACCC: Sharetea pays penalties for alleged breaches of the Franchising Code (2 Nov 2026)
- ACCC: Infringement notices register
- ACCC: OPSM and Laubman & Pank franchisor pays penalty (30 Mar 2026)
- ACCC: Specific purpose funds for franchise businesses
- ACCC: Franchise Disclosure Register
- Federal Register of Legislation: Competition and Consumer (Industry Codes, Franchising) Regulations 2024
- MST Lawyers: Franchise disclosure document update 2026, key deadlines
