Two Well-Known Franchisors Penalised for Failing to Update the Franchise Disclosure Register

Published: 26 June 2025 | Source: ACCC Media Release

At Bane Legal Services, we keep a close eye on compliance issues that matter to franchisors and franchisees alike. A recent enforcement action by the Australian Competition and Consumer Commission (ACCC) highlights how even established brands can fall foul of the Franchising Code of Conduct—a key regulatory framework in the franchising sector.

On 26 June 2025, the ACCC announced that two well-known franchisors - Cash Converters Pty Ltd and MTA - Mobile Travel Agents Pty Ltd - had each paid a $16,500 penalty for allegedly breaching the Code.

What Did They Do Wrong?

According to the ACCC, both Cash Converters and MTA allegedly failed to annually update or confirm key franchisor information on the Franchise Disclosure Register - a mandatory obligation under the Code.

The Register, maintained by the Department of the Treasury, provides free public access to franchisor profiles, making it easier for prospective franchisees, advisers, and current franchisees to evaluate franchise opportunities with accurate and timely data.

“A franchisor’s failure to maintain up-to-date information on the Register undermines transparency… and the reliability and integrity of the Register,” said ACCC Deputy Chair Mick Keogh.

Why Does This Matter?

The Franchising Code exists to balance the power between franchisors and franchisees. Disclosure requirements, like keeping the Register up to date, are not optional - they’re essential for transparency and fairness in franchise relationships.

Failure to comply may lead to infringement notices, fines, or other regulatory actions from the ACCC. As this case shows, even franchisors with large networks (Cash Converters has 74 franchisee-owned stores; MTA has over 480 franchisees) are expected to comply in full.

A Broader Crackdown on Franchising Non-Compliance

The penalties come amid an ongoing push by the Federal Government to boost enforcement in the franchising space. In March 2025, the Government committed $7.1 million over two years to bolster the ACCC’s monitoring and enforcement of the Franchising Code.

For small business operators and potential franchisees, this is a strong reminder: due diligence matters, and knowing your rights and obligations under the Code is essential.

How Bane Legal Services Can Help

At Bane Legal Services, we’re not a law firm, and we don’t provide legal advice - but with over 30 years of business experience, we know what questions to ask, and more importantly, which commercial lawyers to ask them to.

Whether you're:

• Considering buying a franchise,

• A franchisor preparing disclosure documents,

• Or navigating a compliance issue under the Franchising Code,

- we can connect you with the right lawyer who understands the complexities of franchising in Australia.

Stay Informed

We encourage all franchisors to regularly review their obligations under the Franchising Code of Conduct, especially regarding disclosure and the Franchise Disclosure Register.

To learn more about the ACCC’s role in franchising and compliance, visit the ACCC’s official Franchising Code of Conduct page.

Need help finding the right franchise lawyer?

Get in touch with Bane Legal Services - your trusted legal matchmaking partner for all things commercial.