Two national franchisors have each paid a $16,500 penalty after the Australian Competition and Consumer Commission issued infringement notices alleging they breached the Franchising Code of Conduct.
The ACCC says second‑hand goods retailer and pawn broker Cash Converters Pty Ltd and travel agency franchisor MTA – Mobile Travel Agents Pty Ltd failed to meet their obligation to annually update or confirm franchisor information on the Franchise Disclosure Register.
The Franchise Disclosure Register is an online register hosted and administered by the Department of the Treasury. It is a free service intended to give prospective franchise buyers, current franchisees and professional advisers access to information provided by franchisors.
“The requirement for franchisors to maintain accurate and up-to-date public profiles on the Register ensures prospective franchisees and other stakeholders have clear and accurate information to help them make informed business decisions, including whether to enter into a franchise agreement,” ACCC Deputy Chair Mick Keogh said.
“A franchisor’s failure to maintain up-to-date information on the Register undermines transparency for prospective franchisees, and the reliability and integrity of the Register.”
MTA, which operates nationally and has about 488 franchisees, and Cash Converters, which in Australia has roughly 74 franchisee‑owned stores and 79 corporate‑owned stores, each paid the same infringement penalty after the ACCC said it had reasonable grounds to believe they contravened the Register update requirements of the Code.
The ACCC said it will continue to monitor compliance with the Franchising Code of Conduct, stressing the code’s role in addressing imbalances between franchisors and franchisees. “The Franchising Code of Conduct applies to franchising in Australia to help address some of the problems caused by the power imbalance in the franchise relationship,” Mr Keogh said. “Failure to comply with the requirements of the Franchising Code of Conduct may result in penalties or other enforcement action by the ACCC.”
The regulator also noted that issuing an infringement notice and the payment of the associated penalty does not, by itself, amount to a finding of contravention. The ACCC has made enforcement of franchising rules a priority, particularly to protect small businesses, and the federal government in March 2025 pledged $7.1 million over two years to strengthen the ACCC’s enforcement of the Franchising Code of Conduct. More information for franchisors and potential franchisees is available on the ACCC website.
