Two major franchisors—Cash Converters and Mobile Travel Agents (MTA)—have learned the hard way that failing to update their Franchise Disclosure Register (FDR) profile doesn’t just slip under the radar. It can cost you.
The ACCC recently issued $16,500 fines to both businesses for allegedly breaching their obligations under section 93 of the Franchising Code of Conduct. The alleged breach? Failing to confirm or update their Register profiles as required by law.
This isn’t just a reminder to tick a box—it’s a signal to the entire franchising sector: the FDR is no longer optional admin. It’s a key part of your legal obligations, and regulators are watching.
What Happened?
Cash Converters operates pawn broking and second-hand goods stores across Australia. MTA runs a large network of home-based travel agents. Both are long-established franchise systems with significant national footprints.
Despite that, the ACCC alleged that neither franchisor confirmed or updated the information on their Franchise Disclosure Register profile as required. This triggered a breach of section 93 of the Code, which mandates annual review and confirmation of that information—on strict timelines.
According to ACCC Deputy Chair Mick Keogh, this isn’t just paperwork:
“A franchisor’s failure to maintain up-to-date information on the Register undermines transparency for prospective franchisees, and the reliability and integrity of the Register.”
What Does the Code Actually Require?
Under section 92 of the Code, a franchisor must provide key business details for inclusion on the Register before entering into a franchise agreement. That includes:
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Legal and trading names
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ABN
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Contact details and addresses
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ANZSIC industry codes
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Any additional information the Secretary requires via legislative instrument
This information must be lodged in the form and manner approved by the Secretary, and provided at least 14 days before entering into the franchise agreement.
Once the profile is live, section 93 of the Code kicks in. It requires:
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Annual confirmation or update of the profile
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Lodgement on or before the 14th day of the fifth month following the end of the financial year (that’s usually 14 November for most franchisors)
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Provision of any new or updated information, especially if something from section 92 changes
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Information required under any new determinations issued by the Secretary
Failing to comply with these steps doesn’t just attract fines—it casts doubt over whether the franchisor is meeting its broader mandatory disclosure obligations under the Code.
Redacting Commercially Sensitive Material
There’s also a common trap in section 94. When uploading documents (like disclosure documents or template agreements) to the Register, franchisors must redact:
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Personal information
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Information listed in subsection 90(3) (such as details about individual franchisees or financials)
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Commercially sensitive information, if the franchisor chooses to do so
Franchisors should not upload unredacted agreements. Doing so breaches the privacy and commercial safeguards built into the Code and may breach other laws as well.
What Should Franchisors Do Now?
Don’t treat the Franchise Disclosure Register as a “set and forget” task. It’s a live obligation, with real consequences. Here’s how to stay on top of it:
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Audit your Register profile—does it exist? Is it complete?
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Track your dates—set a reminder to confirm or update each year.
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Redact before you upload—especially if you’re submitting documents under section 94.
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Check for determinations—the Secretary may require additional details beyond the usual.
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Get legal advice—a franchise lawyer can review your documents and ensure your FDR compliance aligns with the current law.
Final Word
Falling behind on your Franchise Disclosure Register profile isn’t just a technical error—it’s a breach of the Franchising Code of Conduct.
Cash Converters and MTA have already felt the sting. The ACCC has more funding, more powers, and an ongoing focus on this area.
If you’re a franchisor, treat your FDR profile like any other regulated public filing—accurate, timely, and reviewed annually.
Need help navigating your obligations under the Code? Magnolia Legal’s franchise lawyers are ready to assist.
This article is general information only and does not constitute legal advice. Please contact us to obtain advice tailored to your business.