Planned Changes to Australian Franchise Code of Conduct (2025)
Planned Changes to Australian Franchise Code of Conduct (2025)
What are the most significant planned regulatory changes to the Australian Franchise Code of Conduct for 2025, and how will they impact new investors?
2 Answers
In 2025, the Australian Franchising Code was updated to improve transparency and fairness. New investors now benefit from clearer financial disclosures, limits on restraint of trade, protections for early termination, and stronger enforcement, making investments safer but requiring careful due diligence.
In 2025, Australia’s updated Franchising Code of Conduct will require franchisors to disclose more upfront, ensure reasonable returns for franchisees, and limit restrictive post-termination clauses, with higher penalties for non-compliance. For new investors, it feels reassuring because of the transparency, but also adds extra compliance responsibility and costs that need careful planning.