Australia’s franchising rules changed recently, and franchise buyers in 2026 should understand what that means before committing to a deal. The ACCC states that the new Franchising Code of Conduct took effect on 1 April 2025, with some additional rules applying from 1 November 2025. The ACCC also says the new code applies to franchise agreements entered into, extended, renewed or transferred from 1 April 2025, and that franchisors had to update their templates and disclosure documents in time for the November 2025 start date for the later changes.

One of the most important changes for buyers is the treatment of significant capital expenditure. The ACCC says the disclosure document must include information about significant capital expenditure required by the franchisor, and that major refurbishments, relocations, rebranding, equipment and technology upgrades are all likely examples. The ACCC also says franchisors must discuss this expenditure with prospective franchisees before entering an agreement and explain how the franchisee is likely to recoup it.

Another key area is specific purpose funds. Under the new code, a specific purpose fund includes what was formerly known as the marketing fund. The ACCC says these funds must be disclosed, kept and used in line with the code, and that paying into a fund does not mean a franchisee’s individual business must be promoted using that money unless the agreement says otherwise.

The ACCC also says prospective franchisees should get the disclosure document and other key documents before signing and, in most cases, must be given at least 14 days to read them. That makes it even more important to review the paperwork carefully and use the disclosure period properly.

For buyers, the takeaway is simple: ask better questions, review the disclosure carefully, and make sure future costs and fund obligations are understood before you sign. That is where good advice and the right finance structure can make a real difference.