Queensland Harvey Norman franchisor HN Macgregor has been fined $15,650 for breaching the Franchising Code by entering into a franchise agreement without mandatory information included in the Franchise Disclosure Register.
Hosted by the Australian government, the Franchise Disclosure Register aims to increase transparency in franchising by providing prospective franchisees with access to register information, including set-up costs and ongoing payments.
HN Macgregor paid the penalty after the ACCC issued it with an infringement notice.
“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,” said Catriona Lowe, deputy chair of ACCC.
Lowe stated that the act of failing to disclose up-to-date information during registration diminishes transparency for prospective franchisees, the balance between franchisor and franchisee, and the register’s reliability and integrity.
“Entering a franchise agreement is a significant financial decision, and the register contains important information to inform this decision. Franchisees should be able to rely on the fact that all relevant information has been disclosed on the register,” said Lowe.
“The franchising sector should be on notice that failure to comply with the Franchising Code of Conduct may result in enforcement action by the ACCC.”
Last year, Harvey Norman lost an Asic case over misleading finance claims.
This article was first published on sibling website Inside Retail.
