The Australian Competition and Consumer Commission (ACCC) has issued an infringement notice to HN Macgregor Franchisor Pty Ltd – a Queensland franchisor¹ of the Harvey Norman group – for an alleged breach of the Franchising Code of Conduct (Code).

According to the ACCC media release, the franchisor paid a $15,650 penalty after it was alleged to have entered into a new franchise agreement in July 2024 without first publishing required disclosure information on the Franchise Disclosure Register (Register). Part 7 of the Code prescribes the mandatory information which must be disclosed on the Register, together with the relevant timing requirements. It is unknown whether the franchisor failed to provide adequate information to required fields or did not have a Register profile published prior to entering into the relevant franchise agreement.

While payment of the penalty is not an admission of liability, the ACCC has again used this enforcement action to highlight the importance of transparency and compliance in the franchising sector. This comes after the ACCC just weeks earlier issued infringement notices to two franchisors (Cash Converters Pty Ltd and MTA – Mobile Travel Agents Pty Ltd (MTA)) requiring each to pay penalties of $16,500 for allegedly failing to meet their obligation to annually update or confirm the franchisor’s information on the Register.

Deputy Chair Catriona Lowe of the ACCC, has taken the opportunity to emphasise that failure to publish current information on the Register denies prospective franchisees access to key information and “undermines transparency“, which is particularly important to a prospective franchisee while it forms its decision to enter into a franchise agreement.

This recent action forms part of the ACCC’s broader and stated enforcement focus, supported by the Federal Government’s 2025 budget allocation of $7.1 million to strengthen regulation of the Franchising sector. It also signals the ACCC’s interest in ensuring that franchisors meet their Code obligations with respect to the Register.

By way of reminder, infringement notices are issued by the ACCC as an alternative to Court action seeking civil penalties. Infringement penalty amounts are set at 60 penalty units. Payment of the infringement notice prevents the ACCC from taking Court action and is not an admission of liability. Payment of an infringement notice will result in the franchisor’s name being entered onto the Infringement Notices Register (Infringement notices register | ACCC). A franchisor can however challenge an infringement notice if they believe they have not breached the Code.

Key takeaways for franchisors

• You must ensure your Register profile is complete and up to date before entering into a franchise agreement – this is particularly important as most franchisors approach the annual Disclosure Document (and Register!) update season.
• Check your Register profile is up to date and contains all mandatory information.
• Master franchisees must create a profile on the Register.
• The ACCC does not need to commence a formal legal proceeding against a franchisor to encourage compliance; they just need reasonable grounds to believe a contravention of the Code has occurred.
• Failure to comply can result in significant penalties and reputational damage.

If you require assistance updating your disclosure documentation or ensuring your Register profile is compliant, please contact our team. Please also remember that you are not required to upload your disclosure document onto the Register. Alternatively, if you receive an infringement notice and need legal assistance, please contact our team.

This article was written by Sean O’Donnell, Partner and Emily Lucas, Special Counsel.

¹ We suspect HN Macgregor is a master franchisee of the Harvey Norman Group.