Franchise rules in Australia: the Franchising Code of Conduct

This page reports what the official source says. It is not legal advice: ask the office named here. The sources are the Federal Register of Legislation text of the Franchising Code of Conduct, the Treasury explanatory statement for it, and two business.gov.au pages, all read on October 9, 2026. The Code applies to any franchise in Australia and says nothing particular about tree work. The Australian Competition and Consumer Commission publishes the information statement and the Franchise Disclosure Register named below.

Where the Code comes from

The Code is Chapter 2 of the Competition and Consumer (Industry Codes: Franchising) Regulations 2024. Section 8 prescribes it for Part IVB of the Competition and Consumer Act 2010 and declares it a mandatory industry code. The Treasury statement says the Regulations replace the 2014 regulations, which sunset on April 1, 2025, and commence on April 1, 2025. The compilation read is dated October 21, 2025 and includes one amending instrument, the 2025 amendment on the Franchise Disclosure Register, which commenced on that day. Section 15 gives the Code's purpose: to address the imbalance of power between franchisors and franchisees, improve standards of conduct through better disclosure and set requirements for agreements, and provide a fair dispute resolution procedure.

What counts as a franchise agreement

Section 7 sets four tests. The agreement may be written, oral or implied. The franchisor grants the right to carry on a business of offering, supplying or distributing goods or services in Australia under a system or marketing plan substantially determined, controlled or suggested by the franchisor or its associate. The business is substantially or materially associated with a trade mark, marketing or commercial symbol of the franchisor. And before starting or continuing, the franchisee must pay or agree to pay the franchisor an amount, such as an initial capital investment fee, a payment for goods or services, a percentage fee or a training fee. Payments for goods supplied on a genuine wholesale basis, loan repayments and market value payments for property or equipment are excluded. An employer and employee relationship, a partnership, a landlord and tenant relationship, a mortgagor and mortgagee relationship and a lender and borrower relationship are not franchise agreements in themselves.

Section 10 says the Code does not apply to certain agreements, for example where the franchisee supplied substantially the same goods or services for at least 2 years before and the franchise is likely to give no more than 20 per cent of its gross turnover for the first year. It also does not apply to a franchisee who is a member of a registered co-operative or a voting member of a mutual entity.

Before the agreement is signed

Step	What the Code says	Section
Disclosure document	The franchisor must create one in the form and order of Schedule 1, signed by the franchisor or a director, officer or authorised agent, with a table of contents	20
Yearly update	A franchisor with franchise agreements must update it within 4 months starting on the first day of the financial year, if it entered into two or more agreements in the financial year before or intends to enter into another	21
Information statement	The franchisor must give the one published on the Commission’s website as quickly as practicable and not later than 7 days after a prospective franchisee formally applies or expresses interest	22
Documents	A copy of the franchise agreement in the form to be executed, lease documents where premises are leased, the disclosure document and a copy of the Code	23
Consideration period	No execution until 14 days after the last of these days: the day the documents are given, the day a changed agreement is given, or the day earnings information is given	23(6)
Payments made in the period	The franchisor must repay within 14 days of a written request	23(8)

Section 23(4) lets a prospective franchisee who has, or earlier had, a franchise agreement with the franchisor that is the same or substantially the same opt out of being given the disclosure document and the Code by written notice. Item 14 of Schedule 1, the form section 20 points to, has the disclosure document state whether the franchisor will require significant capital expenditure during the term, with as much information as practicable on the rationale, amount, timing and nature, anticipated outcomes and benefits, and expected risks.

Cooling off and money back

Section 50 lets a franchisee terminate a new franchise agreement within 14 days after entering into it. Where a lease or occupancy right is proposed, the 14 days can also run from the day the franchisee receives the first document setting out its terms, or from entering into the lease if no document with substantially identical terms was received. A franchisee with a substantially same franchise can opt out in writing. Section 51 says the franchisor must repay all payments connected with the agreement within 14 days, less reasonable expenses if the agreement sets them out. The business.gov.au buy a franchise page shows a cooling off period as one of the steps in starting an agreement.

Good faith and penalties

Section 18 says each party to a franchise agreement must act towards another with good faith, within the meaning of the unwritten law, and extends this to a person proposing to become a party. A franchisor must not enter into an agreement that limits or excludes the duty. The penalty printed under the section is 600 penalty units. Section 17 sets a higher pecuniary penalty for a body corporate for certain contraventions: the greatest of AU$10,000,000, three times the value of the benefit obtained if the Court can determine it, or, if the Court cannot determine it, 10 per cent of adjusted turnover in the 12 months to the end of the month of the contravention.

The Franchise Disclosure Register

Section 89 says the Chairperson of the Commission must keep the Register by electronic means and make it available for public inspection, without charge, on the internet. Section 92 requires a franchisor to provide its name, trading name, ABN, addresses, business telephone number and email, and ANZSIC industry codes at least 14 days before entering into the franchise agreement. Section 93 requires an update or confirmation at least once for each financial year. business.gov.au says all franchisors must create a franchise profile on the Register and that there is no specific franchise registration or approval process.

Disputes

Section 69 says every franchise agreement must have a complaint handling procedure. Under the Code procedure in section 72, the complainant gives written notice of the nature of the dispute, the outcome wanted and the action thought to resolve it. If the parties cannot agree within 21 days, any party may refer the matter to an ADR practitioner. If they cannot agree on who, the Ombudsman must appoint one within 14 days of a request. Section 16 names the Australian Small Business and Family Enterprise Ombudsman and its functions. business.gov.au adds that a franchisee or franchisor can get help from the Ombudsman or a state small business commissioner.