Venue Smart's $59,400 ACCC Penalties: What This Means for the 2026 Disclosure Cycle
On 3 August 2026, the ACCC announced that Venue Smart Pty Ltd had paid $59,400 in penalties following three infringement notices for alleged contraventions of the Franchising Code of Conduct 2024.
The ACCC alleged that Venue Smart failed to prepare the required annual financial statement for its marketing fund, maintain a separate account for franchisee marketing-fund payments , and provide required information for the Franchise Disclosure Register at least 14 days before entering into a franchise agreement with a prospective franchisee.
Payment of an infringement notice does not constitute an admission or court finding that a contravention occurred. The Venue Smart action was not about missing the upcoming 2026 annual deadlines. However, the allegations concern many of the same systems franchisors will rely on during this year’s disclosure cycle: fund records, account controls, Register information and franchise-development checkpoints.
This shows how disclosure failures can begin inside everyday finance, marketing and franchise-development processes long before a document reaches a legal adviser.
We often see franchisors treat the annual update as handled once the lawyers have the documents. But delays usually begin earlier: Finance is still reconciling figures, Operations is documenting changes, Marketing is accounting for franchisee funds, and the recruitment team may be relying on information that is no longer current.
The annual disclosure process brings those gaps into view.
The Disclosure Timeline Begins Earlier
For franchisors operating on the standard Australian financial year of 1 July to 30 June, annual disclosure-document and Register obligations generally require the disclosure document to be updated by 31 October and Register information to be confirmed or updated before 14 November, subject to the Code’s requirements and any applicable exemptions.
That timetable encourages a dangerous assumption that disclosure is an October job. By October, the work should be close to finished.
The weeks after EOFY give the network time to assemble the evidence behind its update, investigate inconsistencies and identify matters requiring closer review.
Depending on the network’s circumstances, that may include specific-purpose fund reporting, capital expenditure requirements, earnings or performance information, supplier arrangements, fees and material operational changes.
Each area depends on accurate information from different parts of the business. Waiting until October leaves less time to resolve missing records or conflicting explanations and creates pressure to accept information that may not withstand closer scrutiny.
The Register Has Changed in 2026
This year’s cycle also includes a practical change to the Franchise Disclosure Register.
Since 30 March 2026, profiles created or updated by franchisors must use the ACCC’s revised form and manner.
That means the Register should not be treated as a final administrative task after the disclosure document has been updated. The Register profile, disclosure document and recruitment process should be accurate, current and consistent on material information.
A prospective franchisee should not receive conflicting accounts of the opportunity from the Register, the disclosure document and the team handling the sale. When inconsistencies appear, they may point to weaknesses in how the network collects, approves and controls important information.
Venue Smart Shows Where the Process Can Break Down
What stands out in the Venue Smart allegations is how closely the compliance issues are connected to the network’s everyday systems.
The first area is marketing-fund management. Preparing the required annual financial statement and maintaining the appropriate account structure depend on records and controls operating throughout the year. These requirements become difficult to address at the last minute if ownership has been unclear or transactions have not been properly recorded.
The second area is the Franchise Disclosure Register. The ACCC alleged that Venue Smart had not provided the required information at least 14 days before entering into a franchise agreement with a prospective franchisee.
That allegation connects Register compliance directly to franchise development. The recruitment team needs to understand which steps must be completed before an agreement progresses. Legal needs visibility over material changes, and leadership needs confidence that required checks cannot be bypassed.
At this point, disclosure becomes an operating discipline.
Three Lessons for the 2026 Franchise
Disclosure Cycle
Establish Clear Ownership
Identify who owns each source of information required for the update. Finance should confirm figures and supporting records. Marketing should reconcile franchisee-funded expenditure. Operations should document relevant changes to suppliers, systems, fees and capital requirements. Franchise development should confirm what prospective franchisees are currently being told.
Set internal deadlines and approval points for each input. This gives the team time to address missing records, unclear responsibilities and conflicting information before final legal review.
Check Material Information for Consistency
Compare the disclosure document, Franchise Disclosure Register, recruitment materials and information used by the franchise-development team.
Fees, operational requirements and material changes should be accurate and consistent across relevant channels. Reviewing these sources together can reveal gaps that remain hidden when each team checks its own material separately.
Add a Formal Recruitment Checkpoint
Create a documented approval stage before any franchise agreement can progress.
The process should record which documents and information were supplied, when they were provided and who confirmed that the relevant information was current. Responsibility for the final check should be assigned to a specific person or role.
This connects disclosure compliance to the day-to-day recruitment process and reduces the risk of an agreement progressing before the required steps have been completed.
Disclosure as an Operating Capability
The annual update tests more than whether a franchisor can meet a deadline. It tests whether Finance, Operations, Marketing, Legal and franchise development are working from reliable information with clear responsibilities.
Networks that manage disclosure well maintain records throughout the year, assign ownership early and resolve conflicting information while there is still time to examine it properly.
That discipline becomes increasingly valuable as a network expands, introduces new systems, requires store upgrades or seeks investment. Each decision depends on reliable information and clear documentation.
The Venue Smart action gives franchisors a timely reason to test those systems now.
Is Your Network Ready for the 2026 Disclosure Cycle? Talk to Our Experts.
Our teams at DC Strategy and DC Strategy Lawyers can help you prepare before the October and November deadlines.
Need a legal review of your disclosure documents, Register profile or specific-purpose fund arrangements?
Sophie Pettigrew is the Legal Practice Director at DC Strategy Lawyers, with extensive experience in franchise law, compliance and regulatory change. She advises franchisors on disclosure obligations, Franchise Disclosure Register requirements, franchise agreements and the legal processes supporting compliant franchise development.
Need strategic consulting or help strengthening your franchisee pipeline?
James Young is the Managing Director of DC Strategy Group and a Certified Franchise Executive (CFE), with extensive experience in franchise consulting and development across Australasia. He helps franchisors strengthen network governance, respond to industry change and build recruitment programs that bring the right operators into their networks.