HN Macgregor Franchisor Pty Ltd, the franchisor for Harvey Norman in Macgregor, Queensland, has paid a penalty of $15,650 after the Australian Competition and Consumer Commission (ACCC) issued an infringement notice. The notice was due to the company's alleged failure to include mandatory information on the Franchise Disclosure Register prior to entering into a franchise agreement in July 2024.

The Franchise Disclosure Register, maintained by the Australian Government, aims to enhance transparency in franchising and assist potential franchisees in making informed decisions. It includes critical information such as setup costs and ongoing payments that franchisees are required to make.

ACCC Deputy Chair Catriona Lowe emphasized that a franchisor's neglect to publish current information on the disclosure register compromises transparency for prospective franchisees and undermines the integrity of the register. She noted that many laws governing the franchising sector focus on information disclosure, which is crucial due to the inherent power imbalance between franchisors and franchisees.

Ms. Lowe highlighted the significance of the franchise agreement as a major financial commitment, asserting that franchisees should trust that all relevant information is disclosed on the register. She warned that the franchising sector should be aware that non-compliance with the Franchising Code of Conduct could lead to enforcement actions by the ACCC.

The ACCC is currently prioritizing compliance and enforcement to ensure that small businesses are protected under competition and consumer laws, including industry codes of conduct. The ACCC is responsible for regulating industry codes under the Competition and Consumer Act, including the Franchising Code of Conduct, which governs the conduct of franchising participants.

In a related note, the Australian Government announced on 18 March 2025, a funding boost of $7.1 million over two years to enhance the ACCC's enforcement of the Franchising Code of Conduct, allowing for increased education, enforcement, and engagement within the franchising sector.