Before you buy a franchise, understand the ACCC’s role in franchising

By ACCC | 21 Jul 2020 View comments

The Australian Competition and Consumer Commission is an independent statutory government authority serving the public interest. Most of our compliance and enforcement work is conducted under the provisions of the Competition and Consumer Act 2010 (the Act), which includes the Franchising Code

The ACCC’s role in franchising

The ACCC uses a range of compliance and enforcement tools to encourage compliance with the Act. In deciding which compliance or enforcement tool (or combination of such tools) to use, our first priority is always to achieve the best possible outcome for the community and to manage risk proportionately.

The ACCC cannot pursue all matters that come to our attention. Our role is to focus on those circumstances that will, or have the potential to, impact vulnerable consumers, harm the competitive process or result in widespread consumer or small business detriment. The ACCC’s Compliance & Enforcement policy guides decision making about what action the ACCC should take, if any.

The ACCC provides a range of resources and guidance to help potential franchisees like you. This includes short videos explaining common concepts in franchising and things to watch out for – check out our website www.accc.gov.au/buyingafranchise.

To keep up to date with events, court cases and changes to the law in the franchising sector you can sign up to the ACCC’s Franchising Information Network at www.accc.gov.au/fin.

The information in this article is for general guidance only. It does not constitute legal or other professional advice, and should not be relied on as a statement of the law in any jurisdiction. As it is intended only as a general guide, it may contain generalisations. You should obtain professional advice if you have any specific concern.