In this article I take a look at some of the recent commentary around the outlook for franchising in 2026, as well as recapping the regulatory changes in 2025 (particularly the changes that came into effect on 1 November 2025).

2025 was a busy year in franchising with 2 tranches of Franchising Code changes coming into effect, requiring franchise disclosure documents to be updated twice last year in some cases.

Thankfully, 2026 should see more stability on the regulatory front.

The Australian Franchise Outlook Report 2026 indicates that support in understanding legal documents is one of the most important factors in helping someone feel more confident about becoming a franchisee.

The ACCC announced on Thursday that it had issued infringement notices to Cash Converters Pty Ltd and Mobile Travel Agents Pty Ltd, for their alleged failures to comply with the Franchising Code of Conduct and that each franchisor had paid $16,500.00 in penalties.

As franchisors adapt to the Franchising Code of Conduct introduced on 1 April 2025 (the new Franchising Code), we look ahead to the next round of Code changes coming into effect on 1 November 2025.

In this article we look at some of the important changes to the disclosure obligations of franchisors, arising under the new Franchising Code of Conduct, which came into effect on 1 April 2025 ("the new Code"). 

A key aspect of the Amendment (Closing Loopholes) Act 2023 is the criminalisation of ‘wage theft’. Wage theft typically refers to employers intentionally underpaying their employees or deliberately failing to provide them with the wages and entitlements they are owed. Previously, underpayments of employees were subject to civil penalties under the Fair Work Act 2009 (Cth) (“Fair Work Act”), but starting from 1 January 2025, intentional underpayment of wages will now be considered a criminal offence.

The Competition and Consumer (Industry Code - Franchising) Regulations 2024, were made on 5 December 2024 and come into effect on 1 April 2025. You can read the regulations here.

When you buy a franchise, you essentially buy the right to operate a business that is the same as the other businesses in the franchise network.

What is Franchising?

In order for all of the franchised businesses to essentially be the same, the product or service that is sold by each franchise must be consistent.

To achieve consistency, a franchisor may restrict where you purchase the supplies required to operate your business.

This can sometimes mean that the cost of your supplies (or the cost of goods sold) is higher than it otherwise might be if you were operating an independent business.

Starting Your Own Business vs Buying A Franchise

Last week while I was busy ensuring that our franchisor clients had updated their profile on the Franchise Disclosure Register, the Federal Government released its consultation paper on a licensing regime for the franchising sector.

When someone refers to an Intellectual Property Agreement, they are referring to an agreement or clause that deals with the creation, use and protection of intellectual property.

There isn't one type of Intellectual Property Agreement. The term "Intellectual Property Agreement" can be a reference to a number of different types of agreements.

What Is Intellectual Property?