Repair Access, Membership Claims, and Tech Investment Reshape Franchise Operations
This week highlights the operational and regulatory pressures bearing down on franchise networks from multiple directions. From the ACCC compelling car brands to open up repair information, to scrutiny of misleading membership promises at Anytime Fitness, and Guzman y Gomez building proprietary technology to stay competitive, the message is clear: franchisors must be proactive in managing compliance, transparency, and operational capability. Meanwhile, broader policy developments around taxation and supply chain disruption remind franchise businesses that external forces can shift the ground quickly.
- ACCC investigation prompts Mazda, Kia, and BYD to improve repair information access
- Anytime Fitness under fire over misleading ‘any gym’ membership promise
- Cosboa warns government tax plan could impact family businesses
- Supply crunch hits fuel distributors at east-coast ports
- Controversial Victorian work-from-home laws scuttled after Cabinet decision
- Guzman y Gomez builds proprietary kitchen software to improve franchise operations
ACCC investigation prompts Mazda, Kia, and BYD to improve repair information access
Following ACCC investigations, Mazda, Kia, and BYD have improved access to service and repair information for independent repairers and reduced the cost of obtaining it.
Franchise networks that restrict independent access to technical information risk entrenching anti-competitive behaviour and driving up costs for consumers, which can attract scrutiny under the Franchising Code and competition law. This action shows the ACCC is willing to investigate supply-chain information restrictions, and that is directly relevant to automotive franchise systems and any franchise model where proprietary technical data locks out third-party service providers. Franchisors across all sectors should review whether their information-sharing practices could draw similar attention.
Anytime Fitness under fire over misleading ‘any gym’ membership promise
Anytime Fitness faces criticism for advertising that members can visit any of its 600 Australian locations, when members may actually be forced to pay more depending on where they train.
Franchise systems that market a uniform national membership but allow individual franchisees to charge different access fees risk breaching the Australian Consumer Law’s prohibitions on misleading or deceptive conduct. This scenario highlights the tension between franchisor-level brand promises and franchisee-level pricing autonomy. Both franchisors and franchisees should ensure marketing representations accurately reflect the terms consumers will encounter at every location, as ACCC enforcement in this area can result in penalties, corrective advertising, and serious reputational damage.
Cosboa warns government tax plan could impact family businesses
The Council of Small Business Organisations Australia has warned that the Government’s proposed 30 per cent minimum tax remains bad policy and could adversely affect family-run businesses.
Many franchise operations in Australia are structured as family businesses or small proprietary companies, and a minimum tax rate of 30 per cent could reduce after-tax returns for franchisees, particularly those using trusts or other structures common in franchise ownership. This is especially relevant for franchisees whose margins are already tight. Prospective and existing franchisees should model the potential impact on cash flow and discuss structural adjustments with their advisors before any changes take effect.
Supply crunch hits fuel distributors at east-coast ports
Independent fuel distributors are struggling to access usual volumes of petrol and diesel at key east-coast terminals, adding pressure to small service stations.
Fuel franchise networks and independent fuel retailers face direct margin and supply-continuity risks when terminal access is constrained. Under the Franchising Code, franchisors have disclosure obligations regarding supply arrangements, and franchisees reliant on franchisor-supplied fuel should assess whether force majeure or supply shortfall provisions in their franchise agreements adequately protect them. This development also underscores broader cost pressures on any franchise system dependent on logistics and transport.
Controversial Victorian work-from-home laws scuttled after Cabinet decision
Victoria’s proposed work-from-home laws have been shelved by Cabinet and are likely to be referred to a parliamentary committee for further assessment of their economic impacts.
Mandatory work-from-home entitlements would have had significant implications for franchise businesses that rely on in-person staffing, particularly in retail, food, and service sectors. While the proposal has been paused, its referral to a parliamentary committee signals ongoing regulatory interest in flexible work mandates. Franchise systems operating in Victoria should continue to monitor developments, as any eventual legislation could affect rostering, staffing models, and compliance obligations under both employment law and the Franchising Code’s operational requirements.
Guzman y Gomez builds proprietary kitchen software to improve franchise operations
Guzman y Gomez developed its own order management system after off-the-shelf technology could not keep pace, enabling new feature rollouts in as little as 10 days.
Franchisor-mandated proprietary technology systems are a significant consideration under the Franchising Code, which requires disclosure of obligations to use particular IT systems and any associated costs. When a franchisor builds bespoke operational software, franchisees need to understand the cost-sharing model, data ownership implications, and lock-in effects. This trend toward in-house technology control gives franchisors operational agility but also heightens the importance of transparent disclosure in franchise agreements.
Key Takeaways
- The ACCC’s success in pushing Mazda, Kia, and BYD to improve repair information access signals ongoing regulatory willingness to intervene where franchise and dealer networks restrict competition in aftermarket services.
- Anytime Fitness’s ‘any gym’ membership controversy underscores the legal risk franchisors face when national marketing promises do not align with the commercial reality experienced by consumers at individual franchise locations.
- Guzman y Gomez’s decision to build bespoke kitchen software rather than rely on off-the-shelf solutions illustrates how franchisors investing in proprietary technology can gain a competitive edge in operational consistency and speed of innovation across their networks.
- Cosboa’s warning about the proposed 30 per cent minimum tax and the shelving of Victoria’s work-from-home laws show that policy uncertainty remains a live concern for franchise businesses, particularly family-owned operations and those managing workforce arrangements.
- Supply constraints at east-coast fuel terminals are a reminder that franchisees in fuel retailing and other supply-dependent sectors remain vulnerable to disruptions outside their control, reinforcing the importance of robust supply agreements.
Minerva Law has acted for franchisors and franchisees across the full franchise lifecycle since 2013.
minervalaw.com.au