Competition and Consumer (Industry Codes - Franchising) (Additional Information Required by the Secretary) Determination 2022

This Determination sits alongside the Competition and Consumer (Industry Codes - Franchising) Regulations 2024. Its job is narrow but important. It identifies extra information that certain franchisors must provide to the Secretary when they are creating disclosure documents for prospective franchisees.

The key operative provisions are sections 6 and 7. Section 6 identifies which franchisors need to provide information and links the obligation to each disclosure document created by the franchisor. Section 7 lists the additional information that is covered, while also excluding certain personal, franchisee-specific and site-specific information.

For a business owner, the practical point is this: if you are franchising in Australia and preparing disclosure documents for prospective franchisees, you should not assume the disclosure document is the only compliance step. You may also need a process for providing the Secretary with the extra information required by this Determination.

Section 6(1) says that each franchisor to which section 92 of the Franchising Regulations applies is determined as needing to provide the Secretary with the information covered by section 7 in relation to each disclosure document created by the franchisor.

That means the starting point is not every business generally. It is franchisors who are within the disclosure regime under the Franchising Regulations and who are creating disclosure documents for prospective franchisees. If your business is not acting as a franchisor, or is not required to create a disclosure document under that regime, this Determination is unlikely to be your main issue.

In practice, the businesses most likely to be affected are established franchise systems, growing franchise networks, and businesses moving from a pilot model into broader expansion. Internal franchise development teams should treat this as part of the disclosure workflow, not as a separate issue to be checked later.

Section 6(2) creates a limited exemption. It says section 6(1) does not apply to a disclosure document if both of the following are true:

First, the disclosure document relates to a franchise where the franchisor has entered into less than 2 franchise agreements. Second, the disclosure document relates to a franchise where the franchisor does not intend, or if the franchisor is a company, its directors do not intend, to enter into franchise agreement.

This is a narrow carve out. It is aimed at a very small or early stage franchise arrangement, not a franchisor that is already operating a broader network or planning to grow one. A business cannot rely on the exemption just because it is small. Both limbs need to be satisfied.

The wording about intention matters. For an individual franchisor, the question is whether the franchisor intends to enter into franchise agreement. For a company franchisor, the question is whether its directors intend that. If the business is testing a pilot model but actively planning rollout, the exemption may not be available even if fewer than 2 franchise agreements have been entered into so far.

The practical trigger comes from section 6(1). The additional information must be provided to the Secretary in relation to each disclosure document created by the franchisor. The Determination does not set out a separate annual reporting cycle. Instead, it is tied to the creation of disclosure documents for prospective franchisees under the Franchising Regulations.

That means franchisors should build this into the same internal process used to prepare, approve and issue disclosure documents. If your team treats the disclosure document as complete before checking the section 7 information, there is a real risk of inconsistent records or missed reporting steps.

The safest operational approach is to treat each new disclosure document as a compliance event. Before it is finalised, confirm whether the section 6(2) exemption is unavailable and whether the section 7 information has been collected in a form that can be provided to the Secretary.

The Determination itself does not set out penalties or filing mechanics in the extracted text. Businesses should therefore check the current Franchising Regulations and any current administrative guidance before relying on internal assumptions about process or timing.

Section 7(2) lists the additional information that is covered. This is system-level information about the franchise and the franchise agreement settings. It includes:

The number of years that the franchise or franchise system has operated in Australia. Whether the franchisor, an associate of the franchisor, or a director of the franchisor or the associate has, in the last 10 years, been convicted of a serious offence or equivalent offence outside Australia, in the last 5 years been subject to final judgment in civil proceedings for a matter mentioned in item 4(1) of Schedule 1 to the Franchising Regulations, or has been bankrupt, insolvent under administration or a Chapter 5 body corporate in Australia or elsewhere.

It also includes the number of existing franchised businesses and franchisees, and businesses owned or operated by the franchisor or an associate in Australia that are substantially the same as the franchised business, plus each State or Territory in which those businesses or franchisees operate.

Section 7 then moves into commercial settings. It requires information about restrictions on a franchisee acquiring goods or services from other sources, any payment required before a franchise agreement is entered into and why it is required, how it will be applied, who will hold it and when it will be refunded, startup costs, payments during the term to the franchisor or an associate, and payments to third parties.

It also requires information about whether the franchise agreement may be varied unilaterally by the franchisor, whether it provides for arbitration of disputes in a manner consistent with the relevant subdivision of the Franchising Regulations, the term of the agreement, whether there is an option to renew, whether the franchisee has rights relating to goodwill generated by the franchisee, and whether the agreement includes a restraint of trade or similar clause.

Section 7(1) is just as important as section 7(2). It says the listed information is covered unless it falls into one of three excluded categories.

First, personal information that relates to an individual other than a franchisor must not be included. Second, information that relates to a particular franchisee of a franchisor must not be included. Third, information that relates to a particular site being occupied by a franchisee of a franchisor must not be included.

This means the Determination is aimed at system-wide transparency, not disclosure of private details about individual franchisees or site-specific arrangements. Franchisors should review data sources carefully. A spreadsheet built from operational records may contain personal or site-level details that should not be carried across into the information provided under this Determination.

Because the required information spans legal history, network structure, payments and contract settings, compliance usually involves more than one team. Legal, finance, franchise development and operations may all hold part of the information.

Businesses should review their disclosure document template, franchise agreement template, onboarding process, payment collection process and records about associates and directors. They should also check whether their records distinguish between system-wide information and information about a particular franchisee or site.

Particular care is needed where the franchise agreement allows unilateral variation, includes restraints, deals with goodwill, or requires money before entry into the agreement. Those are all matters expressly listed in section 7 and should be reflected consistently across the franchise agreement, disclosure materials and the information provided to the Secretary.

This instrument was registered on 11 November 2022 and commenced on 12 November 2022. The current compilation referenced here is Compilation No. 1, dated 1 April 2025, and includes amendments up to the Competition and Consumer (Industry Codes - Franchising) (Additional Information Required by the Secretary) Amendment Determination 2025.

The compilation notes also state that the instrument was originally made under the 2014 franchising regulation framework and was authorised by the Competition and Consumer (Industry Codes - Franchising) Regulations 2024 from 1 April 2025 when section 3 was amended. For transitional, application and saving provisions relating to the repeal of the earlier regulations, the compilation points readers to section 101 of the 2024 Regulations.

Before relying on this page, businesses should check whether there are any later amendments, uncommenced changes or modifications shown on the Federal Register of Legislation.

This page explains the Determination at a practical level, but businesses should still verify a few points against the current law and their own franchise structure.

First, confirm that section 92 of the Franchising Regulations applies to your business. Second, check whether the section 6(2) exemption is genuinely available, including the intention element. Third, make sure the information you plan to provide is system-wide and does not include excluded personal, franchisee-specific or site-specific information. Fourth, confirm that your disclosure document and franchise agreement are consistent with the information being reported. Fifth, check the current Register entry for later amendments or uncommenced changes.

These checks are especially important for growing franchise systems, company franchisors with changing board intentions, and businesses moving from a pilot model into active expansion.