Harvey Norman Franchisor Penalised for Franchising Code Breach: What You Need to Know

Barry Money
Aug 4
2 min read

Date: 4 August 2025

Author: Bane Legal Services

A franchisor sitting at a desk with paperwork titled 'Franchising Code of Conduct' and 'Disclosure Register'. A warning sign or exclamation mark icon nearby.

A Queensland-based Harvey Norman franchisor has paid a $15,650 penalty after the Australian Competition and Consumer Commission (ACCC) alleged it breached the Franchising Code of Conduct.

The franchisor in question, HN Macgregor Franchisor Pty Ltd, was issued with an infringement notice for allegedly failing to upload required information to the Franchise Disclosure Register before signing a franchise agreement with a prospective franchisee in July 2024.

The Franchise Disclosure Register, maintained by the Australian Government, is designed to increase transparency in the franchising sector. It helps potential franchisees make informed business decisions by providing critical data like set-up costs and ongoing fees.

Why This Matters to Franchise Buyers and Franchisors

The ACCC’s Deputy Chair, Catriona Lowe, emphasised that failure to publish or update details on the register “undermines transparency” and compromises the “reliability and integrity of the register.”

These disclosure rules are vital because of the power imbalance that often exists between franchisors and franchisees. Franchise agreements typically involve long-term financial commitments and carry considerable risk for the buyer. Accurate and timely disclosure is not just a legal obligation — it’s a cornerstone of fair franchising practice.

“The franchising sector should be on notice that failure to comply with the Franchising Code of Conduct may result in enforcement action by the ACCC,” Ms Lowe warned.

A Reminder of Franchising Code Obligations

The Franchising Code of Conduct is a mandatory industry code regulated by the ACCC under the Competition and Consumer Act. It outlines clear rules for disclosure, dispute resolution, good faith, and other conduct between franchisors and franchisees.

While the payment of an infringement notice is not an admission of guilt, it signals that the ACCC had reasonable grounds to believe a breach had occurred.

In March 2025, the Federal Government also announced $7.1 million in additional funding over two years to boost the ACCC’s enforcement and education efforts in the franchising space — indicating increased regulatory scrutiny for the sector.

Need Help Navigating the Franchising Code?

At Bane Legal Services, we know how complex franchise compliance can be — whether you’re a franchisor juggling regulatory obligations or a prospective franchisee trying to make sense of your legal rights.

While we’re not a law firm and do not provide legal advice, we’re Australia’s trusted legal matchmakers. With over 30 years of business experience, we connect franchise buyers and business owners with the right commercial lawyers for their needs — saving you time, money, and stress.