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The Franchising Code of Conduct Explained: What Gold Coast Businesses Need to Know

  • Writer: Raymond Duffy
    Raymond Duffy
  • Nov 7, 2025
  • 4 min read

Introduction

Franchising continues to grow across the Gold Coast, particularly in sectors such as hospitality, retail, and home services. Whether you’re an established franchisor or someone looking to buy a franchise, understanding your legal rights and obligations is critical.


At the heart of Australia’s franchising system is the Franchising Code of Conduct — a mandatory industry code regulated by the Australian Competition and Consumer Commission (ACCC). The Code sets out rules designed to promote transparency, fairness, and good faith between franchisors and franchisees.


At Greyson Legal Gold Coast franchise lawyers we regularly advise clients on compliance with the Code — from disclosure obligations to dispute resolution. Here’s what every local business involved in franchising should know.



What Is the Franchising Code of Conduct?

The Franchising Code of Conduct is a federal regulation made under the Competition and Consumer Act 2010 (Cth). It applies to all franchise agreements entered into, renewed, or transferred in Australia.


The Code exists to ensure that franchise relationships are fair, transparent, and balanced. It governs how franchisors and franchisees interact before, during, and after entering into a franchise agreement.


For Gold Coast businesses, this means that regardless of whether you’re a small local café franchise or part of a national retail brand, compliance with the Code is not optional — it’s the law.


Key Objectives of the Code

The Code’s main goals are to:

  • Ensure informed decision-making through mandatory disclosure;

  • Promote good faith dealings between franchisors and franchisees;

  • Provide fair dispute resolution procedures; and

  • Create accountability and transparency in how franchises are marketed, sold, and managed.


These principles are designed to protect both parties and support a healthy franchising environment — particularly important for Gold Coast businesses operating in competitive sectors like tourism and retail.


Mandatory Disclosure Requirements

One of the Code’s cornerstone obligations is franchisor disclosure.

A franchisor must provide a prospective franchisee with:

  1. A Disclosure Document;

  2. A copy of the proposed Franchise Agreement; and

  3. A copy of the Franchising Code of Conduct itself.


These documents must be given at least 14 days before the franchisee signs any agreement or makes any non-refundable payment.


The Disclosure Document includes important details such as:

  • The franchisor’s business experience and financial details;

  • Initial and ongoing fees;

  • Territorial boundaries;

  • Marketing fund information; and

  • Details of current and former franchisees.


Greyson Legal’s franchise lawyers help Gold Coast buyers review these documents to identify any warning signs or unclear obligations before committing.


Good Faith Obligations

The Code requires both franchisors and franchisees to act in good faith at all times.

This means they must:

  • Deal honestly and fairly;

  • Cooperate to achieve the purposes of the franchise agreement;

  • Avoid acting for ulterior motives or causing unnecessary harm to the other party; and

  • Consider each other’s interests in decision-making.


For franchisors, this may mean providing reasonable opportunities for franchisees to succeed. For franchisees, it includes operating the business in accordance with the system and communicating transparently with the franchisor.


Failure to act in good faith can lead to disputes or ACCC enforcement action.


Marketing Funds and Financial Transparency

If a franchisor operates a marketing or advertising fund, the Code requires:

  • Contributions to be spent only for legitimate marketing purposes;

  • Annual financial statements to be prepared and provided to franchisees;

  • Audit requirements for funds (unless exempted); and

  • Disclosure of how funds are used.


Franchisees on the Gold Coast often contribute to shared advertising campaigns for local and national promotions — knowing how those funds are managed is critical for accountability.


6Franchise Renewal, Transfer, and Termination

The Code also regulates how franchise agreements can be renewed, transferred, or terminated.

Renewal

Franchisors must notify franchisees at least six (6) months before the end of the term if they will offer renewal.

Transfer (Sale of Franchise)

When a franchisee sells their business, the franchisor must act reasonably when considering consent to the transfer. The franchisor cannot unreasonably withhold approval of a suitable buyer.

Termination

The Code outlines clear procedures for terminating a franchise agreement, including notice requirements, cooling-off rights, and the handling of serious breach or special circumstances (e.g. fraud, insolvency, or public safety).


Greyson Legal assists both franchisors and franchisees in managing transfers, renewals, and terminations in compliance with the Code.


Dispute Resolution and Mediation

The Code provides an alternative dispute resolution (ADR) process that encourages negotiation and mediation before litigation.


Franchisors and franchisees can refer disputes to the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), which provides low-cost, accessible mediation services.


For businesses on the Gold Coast, this approach helps resolve disagreements quickly and cost-effectively, preserving relationships and avoiding the expense of court proceedings.


Penalties and ACCC Enforcement

Non-compliance with the Code can lead to significant financial penalties. The ACCC has the authority to issue infringement notices, seek court orders, and impose civil penalties for breaches such as:

  • Failing to provide disclosure documents;

  • Misleading potential franchisees; or

  • Failing to act in good faith.


The ACCC actively monitors the franchising sector — including hospitality and retail operators along the Gold Coast — making compliance essential to protect your business reputation and finances.


Why the Code Matters for Gold Coast Businesses

Franchising is built on trust, brand consistency, and compliance. The Franchising Code of Conduct ensures that franchise relationships operate on fair and transparent terms.


For Gold Coast franchisors, compliance helps avoid penalties and build stronger franchise networks. For franchisees, understanding your rights under the Code helps safeguard your investment and prevent disputes before they arise.


At Greyson Legal, we help both franchisors and franchisees understand and comply with the Code — from preparing disclosure documents to reviewing franchise agreements and resolving disputes.


Need Help Understanding or Complying with the Franchising Code?

Whether you’re starting, selling, or managing a franchise on the Gold Coast, Greyson Legal | Franchise Lawyers can help you stay compliant and protected.

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