Retail & QSR Market Entry Playbook: Franchising, Food Standards & Compliance in ANZ

Australia and New Zealand share high consumer purchasing power, an English-speaking population, and a deeply ingrained café and food-service culture that rewards quality, brand authenticity, and consistent service. Both markets operate under transparent, rule-of-law regulatory frameworks that favour well-prepared foreign entrants. Australia's proximity to Asian supply chains, combined with a multicultural customer base open to global food and retail concepts, makes it one of the most accessible developed-market expansions in the Asia-Pacific region.

For QSR operators specifically, Australia has a mature but still-growing quick-service sector, with consumer demand for health-conscious options, sustainability credentials, and digital ordering platforms continuing to accelerate. Retail entrants find a sophisticated omnichannel market where physical stores and e-commerce must integrate from day one.

New Zealand mirrors many Australian dynamics at a smaller scale and often serves as a lower-risk pilot before a full Australian roll-out. Both countries share the Australia New Zealand Food Standards Code, simplifying cross-Tasman product compliance for food businesses.

Six interlocking regulatory regimes govern retail and QSR market entry in Australia:

• Australian Consumer Law (ACL) — administered by the ACCC; applies to every business selling goods or services in Australia regardless of ownership.
• Franchising Code of Conduct — a mandatory code under the Competition and Consumer Act 2010, overhauled with effect from 1 April 2025.
• Food Standards Code — developed by FSANZ and enforced nationally; supplemented by state/local food business registration.
• Fair Work framework — minimum wages and conditions set under modern awards, particularly the Fast Food Industry Award [MA000003].
• FIRB foreign investment rules — approval requirements for commercial land and business acquisitions, with thresholds updated annually.
• Payment surcharging rules — cost-matching rules now in force, with a ban on card surcharges from 1 October 2026.

Understanding how these regimes interact — and sequencing compliance work accordingly — is essential to a cost-effective entry. The sections below address each in turn.

The Australian Consumer Law (ACL) — contained in Schedule 2 of the Competition and Consumer Act 2010 — applies nationally to all businesses supplying goods or services in Australia, including foreign-owned and foreign-managed businesses. There is no minimum turnover threshold: even a new market entrant operating a single outlet is fully subject to the ACL from its first day of trading.

The ACL's four core obligations most relevant to retail and QSR operators are:

• Consumer guarantees: Goods must be of acceptable quality, fit for any disclosed purpose, and match their description. Services must be provided with due care and skill and within a reasonable time. If a guarantee is breached, consumers are entitled to repair, replacement, or refund — the remedy depends on whether the failure is major or minor.
• Misleading or deceptive conduct: Any representation — advertising, packaging, menu descriptions, loyalty-programme communications — must not be false or likely to mislead. This includes omissions as well as positive statements. Health claims on food products are a common enforcement focus.
• Unfair contract terms: Standard-form contracts with consumers or small businesses (including franchise agreements and supplier contracts) must not contain unfair terms. Since November 2023, unfair terms are void and attract civil penalties.
• Product safety: Goods must comply with mandatory safety standards and bans; a mandatory reporting obligation requires notification to the ACCC of serious product-related injuries within two days.

The ACCC enforces the ACL and has demonstrated willingness to take action against franchisors and large retail chains. Foreign brands should audit all consumer-facing materials, standard-form contracts, and supply agreements against ACL requirements before launch.

The ACCC can seek civil penalties, injunctions, compensation orders, and adverse publicity orders through the Federal Court. For corporations, the maximum civil penalty per contravention of many ACL provisions is the greater of A$50 million, three times the benefit obtained, or 30% of adjusted turnover for the relevant period. Individual penalties can reach A$2.5 million.

For franchising-specific breaches, recent infringement notices under the Franchising Code illustrate the enforcement appetite: Luxottica Franchising Australia (the OPSM and Laubman & Pank franchisor) paid a penalty of A$19,800, and HN Macgregor Franchisor Pty Ltd (a Harvey Norman franchisor entity) paid A$15,650, for code breaches. While these amounts are modest, they signal that the ACCC actively monitors franchise disclosure compliance and will escalate to court proceedings for more serious or repeated conduct.

Practical implication: foreign brands entering via franchise models should conduct a full ACL and Code compliance review with Australian legal counsel before signing any franchise agreement or engaging local franchisees.

The Australia New Zealand Food Standards Code, developed and maintained by Food Standards Australia New Zealand (FSANZ), sets mandatory requirements for all food sold in both countries. The Code covers:

• Food labelling: Country of origin, ingredient lists, allergen declarations, nutrition information panels, and date marking are all prescribed.
• Additives and contaminants: Permitted additives, maximum residue limits for agricultural and veterinary chemicals, and maximum limits for heavy metals and environmental contaminants.
• Microbiological limits: Pathogen limits for ready-to-eat foods, raw meats, dairy, and seafood.
• Novel foods and substances: New ingredients not previously consumed in Australia or NZ require pre-market assessment by FSANZ before commercialisation.

Because the Code applies in both jurisdictions, a product formulation compliant in Australia is generally compliant in New Zealand for the same standards — a genuine cross-Tasman benefit for brands rolling out across both markets simultaneously. However, some NZ-specific requirements exist, and importers should verify compliance on a product-by-product basis with local advisers.

While the Food Standards Code sets national content and labelling requirements, food business registration and licensing is administered at the state and territory level — in most cases by local councils acting as the delegated authority under state food legislation (e.g., the Food Act in each state). This creates a two-tier compliance obligation for QSR operators.

A new QSR brand opening sites in multiple states will need to register each premises separately with the relevant local council or state food authority. Registration typically requires:

• Completion of a food business registration form prior to commencing operations.
• Designation of a food safety supervisor (FSS) — a trained, certified individual responsible for food safety at the premises in most states.
• Compliance with the relevant state Food Act and associated food safety standards (Standard 3.2.1–3.2.3 of the Food Standards Code govern food safety management).
• Premises approval — council inspections of fit-out, equipment, and hygiene infrastructure before trading commences.

Timelines for registration and approval vary by council and state. In major metro areas, allow 4–8 weeks for initial approvals after submitting plans. Purpose-built or refurbished sites in shopping centres may also require development approval under local planning rules in addition to food business registration.

New Zealand food businesses must similarly register under the Food Act 2014 with their local council, and operate under a registered food control plan or a national programme depending on the risk profile of the food sold.

Australia's Franchising Code of Conduct is a mandatory industry code under the Competition and Consumer Act 2010, enforced by the ACCC. A comprehensively reformed version commenced on 1 April 2025, with additional provisions taking effect from 1 November 2025. Foreign franchisors entering the Australian market must comply in full — there is no grace period for offshore brands.

The most significant changes include:

• Capital expenditure disclosure: Franchisors must disclose any significant capital expenditure the franchisee will be required to make, both at the outset and during the term. This is a major shift from the prior regime and directly affects QSR operators whose franchise models involve fit-out or equipment upgrades mandated by the franchisor.
• Specific purpose funds: Marketing and other pooled funds collected from franchisees are now subject to tighter governance, including rules about how funds can be spent and what information must be disclosed.
• Early-termination compensation: If a franchisor terminates a franchise agreement early other than for a breach by the franchisee, the franchisor must compensate the franchisee for reasonable losses. This significantly increases the risk of premature network restructuring.
• Restraint-of-trade restrictions: New limits apply on the scope and duration of post-term non-compete clauses. Overly broad restraints may be unenforceable.
• Good faith obligation: All parties must act in good faith throughout the franchising relationship — including during negotiations, performance, and dispute resolution.
• Agreement stability: Franchisors generally cannot unilaterally change an agreement after it is signed — a protection that benefits franchisees but constrains the operational flexibility some international brands are accustomed to.

Before a prospective franchisee signs any agreement or pays any money, the franchisor must provide:

1. An information statement — a short, plain-English document (prescribed form) explaining the general risks and considerations involved in franchising. This must be given as the very first document in the process.
2. A disclosure document — a detailed document covering the franchisor's corporate background, financial statements, existing and former franchisees, litigation history, site selection process, significant capital expenditure requirements, supply restrictions, marketing fund details, and the key terms of the franchise agreement.
3. A copy of the franchise agreement — in the form it will be executed.

These must be given at least 14 days before the franchisee signs or pays. The disclosure document must be updated annually. Providing a materially incomplete or inaccurate disclosure document is a breach of the Code and can expose the franchisor to ACCC enforcement action and franchisee compensation claims.

Foreign franchisors accustomed to their home-jurisdiction disclosure requirements (e.g., the US FDD regime) should not assume equivalence. Australian requirements differ in structure and content — local legal counsel is essential to prepare compliant documents before any Australian franchise conversations begin.

No — the Australian Franchising Code of Conduct is a Commonwealth instrument that applies only in Australia. New Zealand does not have an equivalent mandatory franchising code. However, New Zealand franchising relationships are governed by general contract law, the Fair Trading Act 1986 (which contains prohibitions on misleading and deceptive conduct comparable to Australia's ACL), and the Commerce Act 1986. The New Zealand Commerce Commission enforces these provisions.

Best practice for foreign franchisors entering New Zealand is to apply disclosure standards comparable to the Australian Code — the reputational and legal risk of opaque disclosure is material under NZ consumer law even without a prescriptive code. Franchisees should also be provided with independent legal and accounting advice time — this is both good practice and a requirement under the Australian Code for Australian franchisees, and mirroring it in NZ reduces disputes.

The Fast Food Industry Award [MA000003] covers businesses primarily engaged in preparing and selling food and drinks for quick service — counter, drive-through, or delivery formats. The Award sets the wage floor; paying below it is a civil contravention under the Fair Work Act 2009, carrying penalties of up to A$18,780 per contravention for individuals and up to A$93,900 for corporations.

Minimum rates effective 1 July 2025:

• Level 1 adult (entry-level crew member): A$26.55/hour (A$1,008.90/week for a 38-hour full-time employee).
• Level 2 (experienced, some responsibility): A$28.12/hour.
• Level 3 (team leader or similar): A$28.55–A$28.90/hour depending on sub-classification.
• Casual loading: 25% on top of the applicable hourly rate — i.e., a Level 1 casual earns a minimum of A$33.19/hour.
• Superannuation: 12% of ordinary time earnings must be contributed to a complying superannuation fund (Superannuation Guarantee rate as at 1 July 2025).
• Junior rates: Employees under 21 attract reduced percentages of the adult rate — for example, a 17-year-old receives 60% of the relevant adult classification rate.

These rates are indexed annually by the Fair Work Commission in its National Minimum Wage Order, typically effective 1 July each year. Budgets built on prior-year figures will understate labour cost from the first payroll cycle after 1 July.

Foreign retailers (as distinct from QSR food-service operators) will generally fall under the General Retail Industry Award [MA000004], which sets minimum wages, penalty rates, allowances, and conditions for retail employees across clothing, homewares, electronics, and general merchandise categories. Specific wage rates under this Award are updated annually — the Fair Work Ombudsman's website should be consulted for current figures.

Across both the Fast Food and Retail Awards, several additional cost items require advance planning:

• Penalty rates: Weekend and public holiday work attracts loadings above the ordinary rate (e.g., Saturday penalty rates and significantly higher Sunday and public holiday rates).
• Overtime: Applies for hours worked in excess of 38 per week or the ordinary span of hours under the Award.
• Annual leave: Full-time employees are entitled to 4 weeks' paid annual leave per year, plus a 17.5% leave loading (or the applicable penalty rate, whichever is higher).
• Record-keeping: Employers must keep time-and-wages records for 7 years and provide pay slips within 1 business day of each pay period. Failure to maintain records is itself a civil contravention.

Many international brands arriving in Australia underestimate the all-in labour cost once penalties, superannuation, leave loading, and payroll tax (a state-level obligation) are factored in. A Level 1 casual crew member working Sunday shifts can cost significantly more than the headline A$26.55 base rate suggests.

The Foreign Investment Review Board (FIRB) administers Australia's foreign investment regime under the Foreign Acquisitions and Takeovers Act 1975. Monetary screening thresholds are indexed annually on 1 January; the 2026 thresholds (effective 1 January 2026) are:

The practical implication for most retail and QSR brands is the vacant commercial land rule: any foreign investor acquiring vacant land for a new development — including a purpose-built restaurant or retail store — must obtain FIRB approval regardless of the land value. This is a common trap for brands that assume small-value acquisitions are exempt.

FIRB launched a new Foreign Investment Portal on 28 May 2025, replacing the previous application system. All new applications must be submitted through the Portal. The Portal streamlines the submission process and provides a more structured progress-tracking interface for applicants.

Key practical points for retail and QSR entrants:

• Apply before completing the transaction. FIRB approval must be obtained before settlement on any notifiable acquisition. Completing without approval carries significant penalties including forced divestiture and civil fines.
• Review period: The statutory review period is 30 days from the date FIRB receives a complete application, but FIRB can extend this by 90 days with notice (and further with agreement). Complex transactions or acquisitions near sensitive infrastructure should allow additional time.
• Competitive bids: If a foreign investor makes an unsuccessful bid in a competitive tender process, they may claim a 75% refund of the FIRB application fee, or a 100% credit for future applications lodged within 24 months.
• Conditions: Approvals may come with conditions — for example, requiring local workforce hiring, development commencement within a specified period, or ongoing notification obligations. Plan for these in investment economics.
• Specialist advice: Engage Australian legal advisers with FIRB experience early in any property or acquisition strategy. The 2026 FIRB framework has evolved considerably from its prior iterations.

Payment surcharging — charging customers a fee for using a card — is regulated by the Reserve Bank of Australia and enforced by the ACCC. Under the current regime (in force until 1 October 2026), businesses may surcharge card payments, but the surcharge must not exceed the business's actual cost of accepting that card (the "cost-matching" rule).

What counts as an eligible direct cost:

• Merchant service fees charged by the acquiring bank.
• Terminal rental or lease fees directly associated with card acceptance.
• Fees charged by payment gateways for transaction processing.

What cannot be included in a surcharge:

• Point-of-sale software costs.
• Staff training for payment systems.
• General overhead or accounting costs.

Excessive surcharges can be reported to the ACCC, which has powers to order refunds and impose penalties. Any surcharge applied must be calculated with reference to the actual cost for the specific card type (e.g., a debit card surcharge may differ from a credit card surcharge).

On 31 March 2026, the RBA announced that surcharging on consumer debit, prepaid, and credit cards on the designated eftpos, Mastercard, and Visa networks will be banned from 1 October 2026. This is one of the most significant changes to retail payment economics in Australia in a decade.

Key details of the ban, as confirmed by the Australian Banking Association and the RBA's final conclusions:

• Surcharging on designated card schemes (eftpos, Mastercard, Visa) will be prohibited.
• The RBA will simultaneously revoke its prohibition on "no-surcharge" rules for designated card systems, allowing card networks themselves to impose no-surcharge rules on merchants.
• To offset the revenue impact on merchants, the RBA will apply lower interchange fee caps to reduce the underlying cost of card acceptance.
• Weekend and public holiday surcharges based on labour cost (not card fees) are unaffected — these are not surcharges on payment methods and remain permissible.
• International card schemes (e.g., American Express operating outside designated system rules) may not immediately be covered — monitor RBA guidance for updates.

Practical preparation steps:

• Audit all POS systems and e-commerce checkouts to identify where card surcharges are currently applied.
• Calculate the net cost impact of absorbing card fees post-1 October 2026, and update financial models accordingly.
• Review pricing strategy — some operators are considering modest headline price adjustments to offset the absorption of card fees.
• Ensure payment system vendors and acquiring banks can remove surcharge functionality before the October deadline.

Use this checklist to sequence compliance work before your first Australian or New Zealand site opens. Items are roughly in execution order.

Corporate & Legal Foundations

• ☐ Register as a foreign company with ASIC under Part 5B.2 of the Corporations Act before conducting any business in Australia.
• ☐ Register for GST with the ATO if annual Australian turnover will exceed A$75,000 (apply before commencing trade).
• ☐ Engage Australian legal counsel to review all consumer-facing contracts, franchise agreements, and standard-form terms for ACL compliance (unfair contract terms, consumer guarantees, misleading conduct).
• ☐ For NZ: Register with the New Zealand Companies Office as a foreign company and confirm applicable NZ obligations (Fair Trading Act, Employment Relations Act, NZ Food Act 2014).

Franchising

• ☐ Prepare a compliant Franchising Code disclosure document and information statement (mandatory before any franchisee conversations).
• ☐ Review all capital expenditure requirements and ensure they are fully disclosed in the disclosure document.
• ☐ Audit any proposed restraint-of-trade clauses against the new restrictions under the 1 April 2025 Code.
• ☐ Establish governance procedures for any specific purpose (marketing) funds to be collected from franchisees.
• ☐ Brief franchisee relations team on the good-faith obligation and early-termination compensation provisions.

Food Standards & State Licensing

• ☐ Conduct a product-by-product compliance review against the Australia New Zealand Food Standards Code (labelling, allergens, additives, novel foods).
• ☐ Register each food business premises with the relevant local council or state food authority before commencing trade.
• ☐ Appoint a Food Safety Supervisor for each site as required by state food legislation.
• ☐ Submit premises plans for council approval; allow 4–8 weeks in metro areas.

Employment & Payroll

• ☐ Classify all roles under the correct modern award (Fast Food Award MA000003 or General Retail Award MA000004).
• ☐ Configure payroll for minimum rates, casual loading (25%), superannuation (12%), penalty rates, and leave loading.
• ☐ Implement time-and-wages record keeping compliant with Fair Work requirements (7-year retention).
• ☐ Register for payroll tax in each state where your Australian payroll exceeds the relevant state threshold (typically A$700,000–A$1.2 million per year depending on state).

Foreign Investment & Property

• ☐ Identify all property acquisitions and assess FIRB approval obligations using the current monetary thresholds — remember: vacant commercial land requires approval regardless of value.
• ☐ Lodge FIRB applications through the new Foreign Investment Portal (launched 28 May 2025) well in advance of settlement.
• ☐ Assess whether any acquisition involves national security considerations (A$0 threshold applies).

Payments

• ☐ Audit current or planned surcharge settings against the cost-matching rule; remove any excessive surcharges immediately.
• ☐ Plan for elimination of card surcharges on eftpos, Mastercard, and Visa from 1 October 2026; update financial models accordingly.
• ☐ Confirm with POS vendors that surcharge functionality can be disabled prior to the October 2026 deadline.

Q: Do I need FIRB approval to enter a retail or restaurant lease in Australia?

A: Generally no — taking a commercial lease is not a notifiable action under the foreign investment rules, which are triggered by acquisitions of interests in land or securities. FIRB approval is required if you are purchasing commercial land (including vacant land for development), acquiring a business above applicable thresholds, or taking a lease of 5 years or more with a right of renewal that could aggregate to more than 5 years on vacant land. Most standard retail and QSR leases do not require FIRB approval, but always confirm with Australian legal advisers based on the specific terms of the lease and the classification of the land. The FIRB Guidance Note 4 on Commercial Land provides detailed analysis.

Q: Can a foreign franchisor choose its home jurisdiction's law to govern Australian franchise agreements?

A: No — not in any meaningful sense. The Franchising Code of Conduct is a mandatory code under a Commonwealth statute; its provisions cannot be contracted out of, and a choice-of-law clause selecting foreign law will not displace Code obligations. Similarly, the ACL applies to all transactions with Australian consumers regardless of governing law clauses. In practice, franchise agreements for Australian operations should be governed by the law of an Australian state (typically NSW or Victoria) and drafted to comply fully with the Code and ACL.

Q: We heard some Franchising Code provisions are delayed to 1 November 2025. Which ones?

A: The core reformed Franchising Code of Conduct commenced 1 April 2025. However, certain additional provisions were deferred and commenced 1 November 2025. In practice, if you are entering the Australian market now, you should treat the complete post-November 2025 Code as the operative standard from day one — there is no commercial logic to structuring a franchise system to the April-only provisions if you will be operating past November. Consult your Australian legal advisers for the specific provisions that were deferred, as the details carry meaningful drafting implications for disclosure documents and franchise agreement templates.

Q: We plan to rely heavily on third-party gig delivery platforms. Does the Fast Food Industry Award still apply to our workers?

A: It depends on the employment classification. Workers engaged as employees (even casually) by your business and performing delivery or in-store duties are covered by the Fast Food Industry Award [MA000003]. Workers engaged by a third-party platform (e.g., Uber Eats, DoorDash) under their platform's own terms are not your employees — their classification and award coverage is a matter between those workers and the platform. However, Australia's sham contracting provisions under the Fair Work Act and recent court decisions on worker classification make it critical to ensure any in-house delivery or production staff are correctly classified. Misclassifying employees as contractors carries serious underpayment exposure and penalties.

Q: The RBA ban applies in Australia — what is the position on surcharging in New Zealand?

A: New Zealand's payment regulation is administered separately. The RBA's ban on card surcharging from 1 October 2026 has no direct application in New Zealand. In NZ, surcharging is not currently prohibited by equivalent regulation, though Commerce Commission guidance requires that any disclosed surcharge accurately represents the actual cost of the payment method. NZ operators should monitor the Commerce Commission's ongoing payments review for any regulatory convergence with Australia's position, and separately review their POS configurations for NZ sites. Do not assume a single payment system configuration is compliant in both jurisdictions simultaneously — engage local advisers in each market.