Surcharge Bans, Supply Restrictions, and Structural Shifts Reshaping Business
This week’s developments highlight a common thread for franchise networks: external forces are reshaping cost structures and operating models faster than many businesses can adapt. From looming surcharge bans that will change payment economics to supply chain restrictions inflating repair costs, and a landmark shift in vehicle sales, franchisors and franchisees face pressure to reassess assumptions baked into their business planning.
- Looming card surcharge ban prompts call for businesses to prepare
- Family businesses seek open discussion on tax reform
- The supply crunch writing off cars early and jacking up insurance premiums
- Why the RBA won’t be coming to save the property market
- BYD says Australia just passed its EV tipping point
Looming card surcharge ban prompts call for businesses to prepare
Once the surcharge ban kicks in, the ACCC will take enforcement action against businesses that try to disguise card surcharges as other types of fees.
Franchise systems that currently pass card payment costs on to customers through surcharges will need to overhaul point-of-sale systems and pricing structures across every franchised outlet. The ACCC’s enforcement focus means franchisors should update their operations manuals and ensure compliance right across the network to avoid penalties under the Australian Consumer Law. Franchisees who end up absorbing the cost may face real margin pressure, making this something that warrants proper disclosure and good faith negotiation within the franchise relationship.
Family businesses seek open discussion on tax reform
Family business groups say current tax settings are causing families to put restructuring on hold rather than proceed, and they are calling for open policy discussion on reform.
A large number of franchise networks in Australia are structured as family owned enterprises or involve family trusts holding multiple franchise units. When tax policy uncertainty deters restructuring, it can delay generational succession planning and transfers of franchise agreements, which typically require franchisor consent under the Franchising Code. Franchisors should keep a close eye on these developments, because stalled succession can affect network stability and growth pipelines.
The supply crunch writing off cars early and jacking up insurance premiums
Independent mechanics say car brands are restricting access to parts and repair information, causing repairable vehicles to be written off prematurely and pushing up insurance costs.
This highlights broader competition concerns around manufacturer control of aftermarket repair access, a theme the ACCC has examined under its right to repair advocacy. Franchise networks in automotive servicing, including independent mechanic and parts franchises, are directly affected when OEMs restrict parts supply. The issue reinforces the case for competition law reform to make sure franchised independent repairers can access the inputs they need to compete.
Why the RBA won’t be coming to save the property market
Analysis suggests the RBA will not cut rates to rescue falling property values, but it cannot ignore the economic signals a housing slump sends.
Interest rate settings directly affect franchise viability. Higher for longer rates increase the cost of fit out finance for new franchisees and reduce consumer discretionary spending across retail and food franchise networks. Franchisors preparing disclosure documents under the Franchising Code should make sure financial projections and risk warnings reflect current rate expectations, and prospective franchisees should factor sustained borrowing costs into their due diligence before committing to a franchise agreement.
BYD says Australia just passed its EV tipping point
Electric vehicle sales have officially overtaken petrol car sales in Australia, marking a landmark shift in the automotive market.
Franchise networks in automotive retail, servicing, and fuel retailing are facing a structural market shift as the vehicle fleet transitions to electric. Fuel based franchises need to plan for declining petrol volumes, while automotive service franchises must invest in EV capable training and equipment. Franchisors updating disclosure documents should address how EV adoption affects the long term viability of territories and business models offered to franchisees.
Key Takeaways
- The ACCC has signalled it will actively enforce the incoming card surcharge ban, including targeting disguised fees, so franchise networks should audit their payment processes and pricing structures now rather than risk compliance action later.
- Restricted access to parts and repair information from vehicle manufacturers is a cautionary example for any franchise system: controlling supply chains too tightly can trigger regulatory scrutiny and reputational damage as costs flow through to consumers.
- Australia’s electric vehicle sales overtaking petrol marks a structural market shift that franchise networks in automotive, fuel retail, and adjacent sectors must factor into long term planning and site selection.
- Family business groups are calling for tax reform to unlock restructuring activity, a signal that franchise systems involving family ownership structures may be deferring succession and growth decisions due to current tax settings.
- With the RBA unlikely to cut rates to support property values, franchisees exposed to property costs should not bank on monetary policy relief and instead focus on operational efficiency and lease management.
Minerva Law has acted for franchisors and franchisees across the full franchise lifecycle since 2013.
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