Franchisors Cash Converters and Mobile Travel Agents (MTA) have each paid a $16,500 penalty after allegedly breaching the franchising code of conduct. 

The ACCC alleged that the two companies failed to annually update or confirm information on the Franchise Disclosure Register, a requirement of the Franchisor Code of Conduct. 

The register aims to provide information regarding franchises to prospective franchise buyers, current franchisees and professional advisers.  

“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,” said ACCC deputy chair Mick Keogh. 

A continuing priority of the ACCC is to ensure small businesses are protected by competition and consumer laws, and mandatory industry codes including the Franchising Code of Conduct. 

“The Franchising Code of Conduct applies to franchising in Australia to help address some of the problems caused by the power imbalance in the franchise relationship,” said Keogh.

Cash Converters provides pawn broking and secondhand buying and selling services with 74 franchises operating nationally, while MTA, a travel planning service, operates 488 franchises across Australia.