The Australian competition authority (ACCC) issued two infringement notices to bubble tea franchisor Sharetea Australia Pty Ltd, which paid penalties totalling A$39,600. The ACCC alleged that Sharetea’s franchise agreements required franchisees to pay costs Sharetea incurred when settling disputes with them. Payment of an infringement notice penalty does not itself mean the recipient is regarded as having contravened the relevant provision.

Following engagement with the ACCC, Sharetea agreed to amend its franchise agreements. The ACCC was concerned that the agreements may have allowed Sharetea to retain money for expenses it had not incurred when a franchisee ended an agreement during the 14-day cooling-off period. It also raised concerns about restrictions preventing former franchisees from participating in similar businesses for extended periods and across broad geographic areas, and about high interest rates on overdue franchise fees.

The ACCC said the action reflects the importance of franchisors complying with the Australian Consumer Law and the Franchising Code of Conduct. The mandatory national code regulates conduct between franchising participants and is intended to address power imbalances between franchisors and franchisees. The ACCC can issue infringement notices where it has reasonable grounds to believe a business has breached certain code provisions.

Sharetea has operated its Australian franchise system since 2012 and had 124 franchise businesses in Australia as of November 2025. The ACCC noted other recent enforcement actions involving alleged Franchising Code breaches, including penalties paid by Luxottica Franchising Australia in March 2026 and by Cash Converters and MTA - Mobile Travel Agents in June 2025 for alleged failures relating to the Franchise Disclosure Register.