After an eventful 2025, the first 6 months of 2026 provided a quieter moment for franchising. However, while there were no direct legislative changes for franchising, there have been a number of changes that will still impact (potentially significantly) on franchisors and their networks. In the articles below, we discuss 2 of the key changes – further increases to penalties under the Competition and Consumer Act 2010 (Cth) and the introduction on a prohibition on unfair trading practices.

The last 6 months have also provided an opportunity to reflect on the changes to the Franchising Code of Conduct that were introduced in 2025 and to further finesse drafting and processes to address those changes. In particular, we have spent some time considering specific purpose funds and, relevantly, what the financial statements for those funds need to look like. As we enter disclosure document renewal season (for most networks) we encourage you to review our article below and remind yourselves of the new requirements in this regard.

Set out below are articles from the past 6 months (or so!) that touch on a few key issues in franchising during that period.

Double trouble: Penalties doubled for competition and consumer law breaches

In March, various changes were made to the penalties that can be imposed for certain breaches of the Competition and Consumer Act 2010 (Cth). While the Franchising Code of Conduct has not itself yet been updated to reflect the new penalties, the new penalties will still be relevant in cases that relate to a breach of the CCA – for instance, in the case of unfair contract terms.

To read the full article, click here.

This article was written by Teresa Torcasio, Partner.

Getting specific about specific purpose funds

The new Franchising Code of Conduct, which commenced on 1 April 2025, replaced the concept of ‘marketing funds’ with a much broader concept of ‘specific purpose funds’ and made a number of significant amendments to the way in which such funds need to be managed and reported on. In particular, these changes will impact on the format of the annual financial statement for specific purpose funds. Our article on specific purpose funds provides details about the changes and highlights a number of key differences (as compared to the old requirements) of which franchisors need to be mindful.

To read the full article, click here.

This article was written by Matthew Rowe, Partner, and Emily Lucas, Special Counsel, and assisted by Natalie Luckman, Law Graduate.

ACL updates: New unfair trading practices laws to apply from 2027

The Federal Government has made good on its intention to prohibit unfair trading practices with the passing of the Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026 (the Bill) in July. The Bill introduces a number of changes to the Australian Consumer Law: a prohibition on unfair trading practices in B2C arrangements, a targeted provision addressing drip pricing and a new framework to govern subscription contracts. The changes will come into effect on 1 July 2027. While the broad prohibition on unfair trading practices will not, at this stage, extend to B2B arrangements (with the exception of the subscription agreement provisions), franchisors still need to consider how the new regime will impact them. In particular, franchisors (and franchisees) will need to review their consumer facing contracts and may need to revisit their pricing and, if applicable, subscription processes, to ensure compliance.

To read the full article, click here.

This article was written by Simon Ellis, Partner, and Laura Fiebig, Solicitor.

New Guidance – A restated Guidance Statement GS018

In preparing their disclosure documents, many franchisors include an audit statement in support of the solvency statement they provide at item 21(1). In April this year, the Auditing and Assurance Standards Board reissued Guidance Statement GS018 which assists auditors to prepare those audit statements.

To see the full article (including a link to the new statement) on the updated statement, click here.

This article was written by Allison McLeod, Special Counsel, and reviewed by Matthew Rowe, Partner.