TLDR
Bubble tea franchisor Sharetea has paid $39,600 after two ACCC infringement notices over alleged breaches of the Franchising Code of Conduct. The ACCC alleged its agreements made franchisees pay Sharetea's costs of settling disputes with them, and Sharetea has agreed to change those and other terms.
KEY TAKEAWAYS
The penalty
Sharetea Australia has paid $39,600 in penalties after the ACCC issued it two infringement notices over alleged breaches of the Franchising Code of Conduct. The ACCC alleged that Sharetea's franchise agreements required franchisees to pay the costs Sharetea incurred in settling disputes with them.[1]
After talks with the ACCC, Sharetea has agreed to amend its agreements to deal with that issue and other concerns: money it may have kept for expenses it did not incur when a franchisee ended an agreement during the 14-day cooling-off period, restrictions that barred former franchisees from similar businesses for long periods across wide areas, and high interest rates on overdue franchise fees.[1]
"We sought changes to some terms in Sharetea's agreements with its franchisees," said ACCC deputy chair Mick Keogh. "Franchise agreements must not create significant imbalances between franchisors and franchisees."[1]
The franchisor
Sharetea, a bubble tea brand that started in Taiwan, has run its franchise system in Australia since 2012 and had 124 franchise businesses across the country as of November 2025. The ACCC notes that paying an infringement notice penalty does not mean a business is regarded as having contravened the code.[1]
Earlier cases
The ACCC's recent franchising penalties have mostly been about the Franchise Disclosure Register. Luxottica Franchising Australia paid $19,800 in March for allegedly failing to keep its register profile up to date.[1] Cash Converters and MTA - Mobile Travel Agents each paid $16,500 in June 2025 for allegedly failing to update their franchisor information on the register each year.[2]
The regulator also recently penalised H&M over missing fire warnings on children's nightwear.
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James Dore is founder and editor of Prompt the Market and Strategy Director at Bushnote, a Sydney strategy, SEO and AI search agency. He has a background in strategy, media and financial services, and led consumer product marketing at MONEYME. He writes on AI search, answer engines, technology policy and media economics.
