AUSTRALIA | Bubble tea franchisor Sharetea Australia Pty Ltd has paid AUD 39,600 in penalties after the ACCC issued two infringement notices for alleged contraventions of the Franchising Code of Conduct.
The ACCC alleged that Sharetea entered into franchise agreements requiring franchisees to pay costs Sharetea incurred when settling disputes with franchisees.
After engaging with the ACCC, Sharetea also agreed to amend its franchise agreements, addressing this issue and other ACCC concerns about Sharetea’s compliance with the Franchising Code and potential unfair contract terms, including:
- if a franchisee exercised their right to end a franchise agreement within the 14-day cooling-off period, Sharetea’s franchise agreement may have allowed Sharetea to keep money for expenses that Sharetea did not incur;
- for long time periods after the agreement ended, franchisees were not permitted to be involved in any similar business activities within wide-ranging geographic areas;
- Sharetea could charge high interest rates on overdue franchise fee payments.
“We sought changes to some terms in Sharetea’s agreements with its franchisees because we were concerned they were unfair,” said ACCC Deputy Chair Mick Keogh.
“This action by the ACCC shows that it is important for franchisors to understand, and comply with, their obligations under the Australian Consumer Law and the Franchising Code. Franchise agreements must not create significant imbalances between franchisors and franchisees.”
Ensuring small businesses receive the protections of competition and consumer laws and industry codes of conduct is an enduring ACCC compliance and enforcement priority.
Sharetea is an Australian company that has operated the Sharetea bubble tea franchise system in Australia since 2012. The brand originated in Taiwan and has 124 franchise businesses across Australia as of November 2025.
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