Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 19 APRIL 2022

Franchisors beware: Five important changes to penalties and obligations under the Franchising Code

Holding Redlich
Holding Redlich
Contributor
Holding Redlich

Holding Redlich

Holding Redlich is a large national commercial firm with offices in Melbourne, Canberra, Sydney,...

View firm profile
Explore more from Holding Redlich

New penalties are being introduced and many existing penalties will double or increase to as much as $10 million.

AustraliaCorporate/Commercial Law
Trent Taylor
Trent Taylor
Katherine Hammond
Katherine Hammond
Jean Lukin
Jean Lukin
Michael Tong
Michael Tong
Author LinkedIn connections

Penalties under the Franchising Code of Conduct (Franchising Code) are increasing significantly. From 15 April 2022, new penalties will be introduced and many existing penalties will double or increase to as much as $10 million.

The Franchising Code failed to adequately deter non-compliance as some large and profitable businesses have been able to absorb penalties as a cost of doing business, according to a 2019 parliamentary report.

In response to that report, the government introduced an amendment to the Competition and Consumer Act 2010 in 2021, which increased some of the maximum penalties under the Franchising Code. Read our previous discussion here.

The new Competition and Consumer (Industry Codes-Franchising) Amendment (Penalties and Other Matters) Regulations 2022 (Code) is the latest development in a suite of reforms aimed at encouraging better compliance with existing franchising legislation.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Video

Misrepresentation In Commercial Contracts Under Australian Law

Misrepresentation in commercial contracts can expose businesses to significant legal and financial consequences, particularly where inaccurate statements, misleading disclosures, or unrealistic forecasts induce entry into a transaction. Under Australian law, parties may pursue remedies through both common law misrepresentation claims and statutory misleading or deceptive conduct provisions under the Australian Consumer Law, with potential outcomes including rescission, damages, and compensation orders.
AustraliaCorporate/Commercial Law
Stonegate Legal
Stonegate Legal
Article

Force Majeure Clause Risks In Australia Explained

Force majeure clauses in Australian contracts determine whether extraordinary events can suspend, delay, or excuse contractual obligations, but relief depends entirely on precise wording and strict compliance with notice and mitigation requirements. Understanding when businesses can legally invoke force majeure versus when they risk breach of contract claims is critical for managing commercial disruption.
AustraliaCorporate/Commercial Law
Stonegate Legal
Stonegate Legal
Article

Frustration Of Contract Explained: Can You Legally Walk Away?

Frustration of contract is widely misunderstood in Australian law, with many assuming contracts automatically end when circumstances become difficult or expensive. This guide examines the strict legal test applied by Australian courts, explaining when supervening events truly discharge contractual obligations and why financial hardship, increased costs, and commercial difficulties typically fall short of the frustration threshold.
AustraliaCorporate/Commercial Law
Stonegate Legal
Stonegate Legal
Article

Dividend Payments - Key Issues For Australian Company Directors

Dividends are a common way for companies to distribute value to shareholders, but whether to declare or pay a dividend is not simply a commercial decision. Directors must ensure that any dividend complies with the Corporations Act 2001 (Cth) (Corporations Act), the company’s constitution and relevant governance requirements, while considering their duties to the company and its creditors.
AustraliaCorporate/Commercial Law
Bartier Perry Solicitors
Bartier Perry Solicitors
Article

What Is The Liability Under A Contractor Agreement In Australia?

A contractor agreement determines who pays when work goes wrong. Independent contractors carry their own commercial risk, unlike employees, so the agreement allocates that risk in detail. Liability commonly arises from breach of contract, intellectual property infringement, and breaches of confidentiality. Indemnities, liability caps and insurance requirements are the three tools that allocate it. Australian law puts limits on that allocation. Consumer guarantees under the Australian Consumer Law apply automatically, and no contract can exclude them.
AustraliaCorporate/Commercial Law
LegalVision
LegalVision
Article

ASIC And APRA Corporate Plans 2026–27: What Regulated Entities Should Expect

APRA and ASIC have released their 2026–27 Corporate Plans, signalling more intensive supervision and enforcement, alongside targeted measures intended to reduce unnecessary regulatory burden. Their priorities span operational resilience, cyber security, artificial intelligence, consumer protection, insurance, superannuation, market integrity and digital assets. For regulated entities, the plans provide a practical roadmap of the areas most likely to attract supervisory attention, information requests and, where deficiencies are identified, enforcement action.
AustraliaCorporate/Commercial Law
Gilchrist Connell
Gilchrist Connell
Article

Update On Status Of Key Tax Measures Announced In Budget 2026-27

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a
AustraliaTax
Holding Redlich
Holding Redlich
Article

Digital Duty Of Care: What Australian Businesses Need To Know

The Australian Government's proposed digital duty of care reforms would extend online safety obligations far beyond social media platforms to encompass any business operating websites, digital platforms, or AI-enabled tools. Rather than simply responding to complaints, businesses would need to proactively identify foreseeable risks and implement safeguards, with substantial penalties for non-compliance reaching up to $109.2 million for companies. The exposure draft introduces a fundamental shift from reacti
AustraliaPrivacy
Holding Redlich
Holding Redlich
Article

Fair Work Commission Releases New AI Guidance And Warns Against Blind Reliance On AI

The Fair Work Commission has introduced new guidance requiring parties to disclose their use of generative AI in proceedings, following a 70% surge in workload attributed to AI-generated applications. A recent case demonstrates the consequences of blind reliance on AI tools, with one applicant ordered to pay costs after continuing a jurisdictionally flawed claim despite repeated warnings from the Commission.
AustraliaEmployment and HR
Holding Redlich
Holding Redlich
Article

Victoria’s New Data Centre Rules – Implications For Developers And Operators

Victoria's new Sustainable Data Centre Action Plan introduces comprehensive planning, renewable energy, and community benefit requirements for data centre developments. The regulations establish location restrictions, noise limits, renewable energy mandates, and water supply requirements while creating new referral authorities to oversee compliance. These changes will significantly impact how developers and operators plan and execute data centre projects in Victoria's rapidly expanding market.
AustraliaMedia, Telecoms, IT, Entertainment
Holding Redlich
Holding Redlich
Article

Federal Budget 2026-27: Three Tax Changes Reshaping Investment, Trust Structures And Business Planning

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth
AustraliaTax
Holding Redlich
Holding Redlich
Article

Yindjibarndi And WA Government To Appeal $150 Million Federal Court Native Title Compensation Decision

The State of Western Australia and the Yindjibarndi Ngurra Aboriginal Corporation have both filed appeals against a landmark Federal Court decision awarding $150 million in compensation for cultural loss caused by mining operations in the Pilbara region. This unprecedented case marks the first judicial determination of native title compensation for future acts and the largest cultural loss award in Australian history, establishing critical precedents for how compensation is assessed when native title rights
AustraliaGovernment, Public Sector
Holding Redlich
Holding Redlich
Article

Project Distress In Queensland: Lessons From The Bathla Collapse

The collapse of the Bathla Group has sent ripples through Australia's construction sector, raising critical questions about financial distress management in major projects. With Queensland delivering an unprecedented infrastructure pipeline amid margin pressures and market uncertainty, are project participants adequately prepared to identify and respond to insolvency warning signs before external administrators arrive?
AustraliaReal Estate and Construction
Holding Redlich
Holding Redlich