Term 1 registrations are NOW OPEN!

Sign Up

ACCC Franchise Rules: What Every Australian Buyer Needs to Know

There’s a Free Government Database Listing Every Franchisor’s Legal History and Fee Structure. Most Buyers Never Check It.

In March 2026, Luxottica — the company behind OPSM — was fined by the ACCC.

The reason? They hadn’t updated their Franchise Disclosure Register profile.

The fine: $19,800.

Not huge. But the message is loud.

The ACCC has $7.1 million specifically allocated to enforce the new franchising code. They are actively looking for breaches.

If you’re researching a Children’s Sports Franchise — or any franchise opportunity in Australia — this is what you need to know before you sign a single page.

It’s based on a recent Courtside Conversations episode by Little Boomers Basketball founder, Emile Koorey.

Watch the Full Episode

What Most Buyers Do

They Google the brand.

Check a few reviews.

Maybe ask a friend who’s run a business.

Then they sit across from a sales manager and try to make the numbers add up.

That’s a reasonable start. But it skips the most powerful research tools available — tools the government built specifically to protect buyers like you.

Tools that are free, online, and take about 20 minutes to use.

Who the ACCC Is and Why It Matters

The ACCC — the Australian Competition and Consumer Commission — governs the Franchising Code of Conduct.

Every franchisor in Australia has to play by the rules in that code. If they don’t, the ACCC investigates, issues fines, and can take franchisors to court.

Think of them as the watchdog for the entire Australian franchise industry.

They’re not neutral. They’re on your side.

The Luxottica fine wasn’t for a major scandal. It was for a paperwork failure. That tells you exactly how seriously the ACCC takes this — and how seriously you should take your research.

The Two Documents Every Buyer Should Know

The Franchise Disclosure Document (FDD)

Every Australian franchisor must produce this document and update it every single year.

The FDD discloses every fee associated with the franchise — upfront costs, royalties, marketing levies, supplier rules. Everything.

You’re entitled to request it before you commit to anything.

Read it carefully. If any number doesn’t match what you’ve been told, raise it. A good franchisor will welcome the question.

We’ve broken this down in more detail in our article This Franchise Document Can Save You $100,000, where we explain exactly what to look for and the red flags you shouldn’t ignore.

If a franchisor won’t give you the FDD — or stalls — that’s a serious problem.

The Franchise Disclosure Register

This is the one most buyers don’t know about.

The Franchise Disclosure Register is a free, public government database. Every franchise brand operating in Australia is listed on it. You can search any brand and pull up their full profile.

What it shows you:

  • How long the system has been operating
  • How many franchises are in the network
  • Which states they operate in and where they plan to expand
  • Whether the franchisor has been involved in legal proceedings in the last five years
  • The minimum and maximum cost to set up the franchise
  • Every line-item expense — insurance, police checks, accounting fees, all of it
  • Whether franchisees must use approved suppliers
  • How long the standard agreement runs, and whether renewal is offered

To find it: search “franchise disclosure register” in Google and click the official government site. Searching a brand takes two minutes. Reading it properly takes twenty.

If a franchise brand you’re researching isn’t listed — stop.

Failing to appear on the register is itself a breach of the Franchising Code of Conduct and one of the clearest red flags you can encounter.

We’ve also covered other warning signs in our article 5 Red Flags You Should Never Ignore Before Choosing a Franchise, which is well worth reading before making any decision.

The New Rule Franchisors Must Meet

The ACCC now requires every franchisor to demonstrate a realistic path to profit for franchisees.

The intent is clear. They want to stop franchise structures where the fee load is so heavy it’s nearly impossible for a franchisee to make a reasonable return.

If the royalties, marketing levies, and supplier obligations are stacking up in a way that leaves little room — ask the franchisor directly.

What does a realistic first-year and second-year P&L actually look like?

Then check it against the FDD.

A Word on Income Claims

The number one complaint the ACCC receives from franchisees?

Franchisors making income promises they can’t back up.

If a franchisor tells you that you’ll earn $80,000, $100,000, or $150,000 in your first year — ask for the evidence.

Which franchisees in the network are hitting those numbers? Under what conditions?

A responsible franchisor gives you ranges from real data. Not guarantees.

If you’re hearing specific income figures as a selling point, treat it as a warning sign — not a green flag.

Emile covers topics like this regularly on his YouTube channel, where he shares practical advice and real-world insights for anyone considering a franchise investment.

Your 5-Point Franchise Due Diligence Audit

Before you sign anything, run through this. It takes about 20 minutes online.

  • Search the Franchise Disclosure Register. Review the brand’s legal history, network size, disputes, and full cost profile. Not listed? Walk away.
  • Check the ACCC website for complaints or enforcement actions against the brand. You can search by company name.
  • Request the FDD and read every fee and obligation. Anything unclear, ask the franchisor to explain it — before you move forward.
  • Google the brand and read real customer reviews. A pattern of complaints is worth taking seriously.
  • Call existing franchisees — independently. Don’t rely on names the franchisor gives you. Find people in the network yourself and ask them directly. What’s the support really like? What surprised them? What would they do differently?

Common Mistakes People Make

  • Googling a franchise brand and assuming a polished website means a compliant franchisor
  • Skipping the FDD because it looks like a legal document
  • Only speaking with the franchisees the franchisor hand-selects
  • Taking income projections at face value without asking for the data behind them
  • Not checking the Franchise Disclosure Register before booking a discovery call
  • Assuming a well-known brand name means the franchisor is operating by the rules
  • Not raising unclear fees with the franchisor before committing to anything
  • Failing to check the ACCC website for complaints or enforcement history

Key Takeaways

  • The ACCC governs the Franchising Code of Conduct and has $7.1 million allocated to enforce it — they’re actively finding and fining franchisors in breach
  • Every franchisor in Australia must maintain an updated profile on the free, publicly searchable Franchise Disclosure Register
  • The FDD must be updated annually and discloses every fee — you’re entitled to request it before signing anything
  • A brand not listed on the Franchise Disclosure Register is already in breach of the code — major red flag
  • Franchisors must now demonstrate a realistic path to profit, not just sell the opportunity
  • Unsubstantiated income promises are the ACCC’s most common received complaint — be cautious of specific earnings figures
  • A 20-minute online audit using free government tools tells you far more than a Google search ever will

FAQ: Common Questions People Ask

1. What is the ACCC and how does it actually protect me?

The ACCC enforces the Franchising Code of Conduct — the rules every Australian franchisor must follow.

They investigate complaints, issue fines, and can take franchisors to court. There’s a real enforcement body in your corner. Not just a rulebook.

2. Where do I find the Franchise Disclosure Register?

Search “franchise disclosure register” in Google and click the official government site.

Search any franchise brand by name. It’s completely free and open to anyone. Takes about two minutes to find and search.

3. What should I look for in the FDD?

Every fee associated with the franchise should be in there. Upfront costs, royalties, marketing contributions, supplier obligations — all of it.

Go through it carefully. Anything that doesn’t match what you’ve been told, raise it with the franchisor before you proceed. A good one will welcome the conversation.

4. What if a franchisor promises me a specific income?

Ask for the evidence. The ACCC’s most common complaint from franchisees is exactly this — income promises that couldn’t be substantiated.

A trustworthy franchisor gives you ranges based on real network data. Not guarantees used to close a sale.

5. Do I need a lawyer to do this research?

Not for the initial phase. The register, the ACCC website, Google reviews, and honest conversations with existing franchisees are all free.

Where a lawyer earns their fee is when you’re reviewing the actual franchise agreement before signing.

Keen to Learn More?

If you want to better understand what’s actually inside a Franchise Disclosure Document — and the key details you should pay close attention to This Franchise Document Can Save You $100,000.

And if you’d like to go deeper into what separates a strong franchise opportunity from one you should walk away from, Emile shares practical insights every week on his YouTube channel, including a full live walkthrough of the Franchise Disclosure Register using Little Boomers Basketball as a real example.