The grace period is officially over. The updated Franchising Code of Conduct is fully operational. With the final mandatory compliance deadline of 1 November 2025 now behind us, Queensland franchisors and franchisees must ensure their operations align with the most significant structural reset the industry has seen in a decade.
For Brisbane’s booming hospitality sector and regional Queensland’s service hubs, this is not just a paperwork update. It is a fundamental shift in regulatory risk and enforcement exposure.
The Post-2025 Regulatory Landscape
The updated Code, which began its rollout on 1 April 2025, is now the mandatory standard for all franchise systems in Australia. If you have not audited your Disclosure Documents or Franchise Agreements since late last year, you are likely operating under outdated assumptions.
Key Pillars of the Reform
- Enhanced Transparency. Stricter plain English requirements for fee structures, rebates and commissions.
- Fairer Contract Terms. A significant crackdown on unilateral variations and unfair termination clauses.
- Strengthened Dispute Resolution. Mandatory pathways aimed at resolving disputes early, backed by enforceable good faith obligations.
- Heightened Regulatory Oversight. The ACCC now has expanded powers to issue infringement notices and pursue civil penalties for breaches.
-
New Disclosure Obligations: No More Fine Print
Transparency is now central to compliance.
| Requirement | What Has Changed? |
| Financial Benefits | Full transparency on all rebates and third-party commissions are mandatory. |
| Capital Expenditure | Franchisors cannot impose surprise mid-term upgrades without rigorous prior disclosure. |
| Litigation History | A clearer and more comprehensive dispute history must be disclosed. |
| Timeframes | The 14-day disclosure period is strictly enforced with no shortcuts. |
Queensland Impact
For multi-site networks across Brisbane, the Gold Coast and the Sunshine Coast, disclosure documents must be tailored and current. A one size fits all template no longer meets the standard of the remade Code.
-
Prohibited Clauses and Unfair Contract Terms
The Code now operates alongside Australia’s strengthened Unfair Contract Term regime. Agreements that are overly one sided are not merely risky. They may be unlawful.
Key pressure points include:
- Restraint of Trade. Provisions must be reasonable and justifiable.
- Early Termination Rights. Strict procedural fairness now applies.
- End of Term Arrangements. Clearer obligations around goodwill and exit pathways.
- Unilateral Variation Clauses. Increased scrutiny on franchisor discretion.
A franchise agreement is no longer just a commercial contract. It is a regulatory risk instrument. If it has not been reviewed by a specialist franchise lawyer in the last six months, it may represent material exposure.
-
Queensland Specific Market Pressures
Queensland’s franchising market presents unique compliance challenges.
- Rapid Expansion Risk. South East Queensland growth means new sites are opening faster than compliance frameworks are updated.
- Personal Liability Exposure. Directors and officers face heightened personal risk for systemic breaches.
- Regional Regulatory Scrutiny. Increased enforcement activity means Queensland businesses are firmly on the radar.
Franchisors expanding into lifestyle sectors such as fitness, wellness and specialty retail must ensure compliance is embedded before scaling.
-
Practical Compliance Checklist
For Franchisors
- Audit all Franchise Agreements and Disclosure Documents against the 1 November 2025 requirements.
- Review supplier rebates and third party benefits for full transparency.
- Train operations managers on Good Faith obligations.
- Maintain detailed dispute and compliance logs.
For Franchisees
- Confirm you are receiving post 2025 Disclosure Documents.
- Assess capital expenditure obligations carefully.
- Obtain independent legal and financial advice before signing or renewing.
The Bottom Line
The remade Franchising Code is no longer a future reform. It is the current legal framework governing franchise systems in Australia.
For Queensland businesses, the time for adjustment has passed. The time for full compliance is now.
Proactive management of these changes will not only protect your business from regulatory action. It will strengthen your franchise network, protect goodwill and position your brand for sustainable growth.
How We Can Help
Whether you are a franchisor updating your documentation or a franchisee assessing renewal terms, compliance is not optional. It is strategic.
NB Commercial Law provides specialist advice on:
- Franchise Agreement drafting and review
- Disclosure Document compliance
- Risk audits and Code compliance strategies
- Dispute management and enforcement response
If your franchise documents have not been reviewed since November 2025, now is the time. Contact NB Commercial Law today for a confidential compliance review and ensure your Queensland business is operating with confidence in this new regulatory environment.