Competition and Consumer (Industry Codes – Franchising) (Approved Form and Manner) Repeal Instrument 2026

Overview

The Competition and Consumer (Industry Codes – Franchising) (Approved Form and Manner) Repeal Instrument 2026 was enacted to repeal the Competition and Consumer (Industry Codes – Franchising) (Approved Form and Manner) Instrument 2025. This repeal instrument was introduced to address the need for updates and improvements to the regulatory framework governing franchising practices in Australia. It was made under the authority of paragraphs 92(3)(a) and 93(3)(a) of the Competition and Consumer (Industry Codes – Franchising) Regulations 2024, by David Salisbury, General Manager of Small Business and Agriculture at the Australian Competition and Consumer Commission. The primary policy objective of this instrument is to streamline and modernise the regulatory requirements for franchising codes, ensuring they remain effective and relevant in the evolving business environment. The instrument commenced on the day after it was registered and repealed the entirety of the 2025 instrument as specified in the Schedule.

Scope and Application

This instrument, titled the Competition and Consumer (Industry Codes – Franchising) (Approved Form and Manner) Repeal Instrument 2026, is applicable to all entities involved in franchising activities within Australia, including franchisors and franchisees. The instrument is made under the authority granted by paragraphs 92(3)(a) and 93(3)(a) of the Competition and Consumer (Industry Codes – Franchising) Regulations 2024, and it specifically repeals the Competition and Consumer (Industry Codes - Franchising) (Approved Form and Manner) Instrument 2025. The repeal takes effect the day after the instrument is registered, and the scope of the repeal includes the entire 2025 instrument. This means that any regulations or provisions contained within the 2025 instrument are no longer in effect from the date of registration of this 2026 instrument. The repeal does not specify any exclusions, exemptions, or thresholds, and no subordinate instruments are mentioned to extend or restrict its application.

Key Provisions

The Competition and Consumer (Industry Codes – Franchising) (Approved Form and Manner) Repeal Instrument 2026 (hereafter referred to as the Repeal Instrument) fundamentally alters the regulatory landscape for franchising agreements in Australia. Section 1 identifies the instrument, while Section 2 outlines the commencement, specifying that all provisions will take effect the day after registration. Section 3 provides the authority for this repeal, rooted in paragraphs 92(3)(a) and 93(3)(a) of the Competition and Consumer (Industry Codes – Franchising) Regulations 2024. The Schedule, particularly Schedule 1, details the specific instruments that are repealed, including the Competition and Consumer (Industry Codes - Franchising) (Approved Form and Manner) Instrument 2025, which is entirely repealed. The Repeal Instrument imposes significant changes on parties involved in franchising agreements. Franchisees and franchisors must now operate under a revised framework that no longer enforces the specific form and manner of disclosure documents as previously mandated. This means that while the overarching obligations to provide certain information remain, the detailed requirements for how that information must be presented are no longer strictly defined by the repealed instrument. Consequently, parties are expected to adhere to the broader guidelines and principles set out in other relevant legislation and regulations. Failure to comply with the repealed provisions, although no longer strictly enforced by the specific instrument, could still result in legal repercussions. The Competition and Consumer Act 2010 remains in force, and breaches of its provisions concerning misleading or deceptive conduct, unfair practices, and other statutory obligations could lead to enforcement actions. The maximum penalties for such breaches can be substantial, including fines of up to $1.1 million for corporations and up to $220,000 for individuals, reflecting the seriousness of non-compliance in the franchising sector. Additionally, civil remedies, including injunctions and compensation orders, may also be sought by aggrieved parties. While the Repeal Instrument itself does not introduce new offences, penalties, or consequences, its effect on the regulatory framework means that parties must ensure their practices align with the Competition and Consumer Act 2010 and other applicable laws. The potential for significant penalties and the risk of litigation underscore the importance of understanding and adhering to the new regulatory environment post-repeal.