The Franchising Code of Conduct was remade in late 2025, and the first quarter of 2026 was about working out what that actually means in practice. Three developments matter for anyone running or buying into a franchise network in Australia: a new compilation of the Code took effect, the ACCC published guidance on applying it, and a $16 million penalty against Mobil showed how the regulator is treating misleading representations generally.
The Franchising Code was remade, not just amended
A new compilation of the Franchising Code of Conduct took effect on 21 October 2025. This is not a minor drafting update. A remade instrument means clause numbering, cross-references and internal definitions move, and every document that cites the Code by clause number needs checking.
For franchisors, that means franchise agreements, disclosure documents, operations manuals and any compliance checklist that refers to specific Code clauses. A disclosure document that cross-references the old numbering is not automatically wrong in substance, but it is wrong on its face, and that is the kind of defect that surfaces at exactly the wrong moment in a dispute.
The ACCC’s guidance tells you where it will look first
The ACCC published guidance to help businesses apply the updated Code from 1 November 2025. Regulator guidance is worth reading not because it changes the law, but because it signals enforcement priorities. Where the ACCC spends pages explaining an obligation, it is telling you which obligations it expects to see breached.
The practical step for franchisors is to reconcile the guidance against your own onboarding process, rather than against your documents alone. Most Code problems we see are not drafting failures. They are process failures: disclosure given late, a cooling-off period miscounted, or a variation signed without the required notice.
The Mobil penalty is a franchise story, even though it is not a franchise case
In February 2026 the ACCC secured a $16 million penalty against Mobil Oil Australia for false representations about fuel sold at nine Queensland service stations. No part of that case turned on the Franchising Code. It still matters to franchise networks, for one reason: the provisions Mobil fell foul of are the same Australian Consumer Law provisions that govern how a franchisor markets opportunities to prospective franchisees.
Representations about likely turnover, site performance, territory potential or supplier pricing all sit under the same prohibition on misleading or deceptive conduct. A $16 million outcome tells you what the regulator now considers an appropriate deterrent, and penalties at that scale set the reference point for everything below them.
What franchisors should do this quarter
- Audit every clause reference in your franchise agreement and disclosure document against the new compilation.
- Walk your disclosure process end to end against the ACCC guidance, timing each step.
- Review any earnings, turnover or performance representation made in your recruitment material, and confirm you hold the substantiation to support it.
- Check your marketing fund reporting is current, since it remains among the most commonly disputed obligations.
What franchisees should take from it
- If you were given a disclosure document before late 2025, it may cite the superseded compilation. Ask which version applies to your agreement.
- Representations made to you verbally during recruitment are capable of being misleading conduct. Write down what you were told, and when.
- The cooling-off period is a right, not a courtesy. Confirm the date it actually started.
Frequently asked questions
Does the new Franchising Code compilation change my existing franchise agreement?
The compilation does not rewrite agreements already on foot, but it changes the framework those agreements operate within, and clause references in your documents may no longer align. Existing obligations continue; how they are described and numbered may not.
Do I need to reissue my disclosure document because of the 2025 changes?
Disclosure documents must be updated annually in any event. The practical question is whether your current version cites the correct compilation and reflects the updated obligations. If it was prepared before late 2025, it should be reviewed before it is next given to a prospective franchisee.
Can a franchisor be penalised for what a salesperson said in a meeting?
Yes. Misleading or deceptive conduct under the Australian Consumer Law is not limited to written statements, and a franchisor can be responsible for representations made on its behalf during recruitment.
This briefing consolidates the Minerva Law franchise and competition law updates published in January, February and March 2026. It is general information, not legal advice for your circumstances.