A Queensland-based Harvey Norman franchisor has paid a $15,650 penalty after allegedly breaching the Franchising Code of Conduct, the Australian Competition and Consumer Commission (ACCC) has revealed.

The company, HN Macgregor Franchisor Pty Ltd, was issued with an infringement notice by the ACCC for failing to provide mandatory information on the federal government’s Franchise Disclosure Register before signing a new franchise agreement in July 2024.

The Franchise Disclosure Register is designed to enhance transparency within the franchising sector, helping prospective franchisees make informed decisions by publishing key details such as start-up costs and ongoing fees.

ACCC Deputy Chair Catriona Lowe said failure to keep the register up to date undermines the system’s integrity and leaves prospective franchisees at a disadvantage.

“A franchisor’s failure to publish up-to-date information on the disclosure register undermines transparency for prospective franchisees, and the reliability and integrity of the register,” Lowe said.

“Many of the laws governing the franchising sector relate to information disclosure and are necessary because of the power imbalance between franchisor and franchisee.”

She stressed that franchise agreements involve major financial commitments, and reliable disclosure is critical for those considering entering the sector.