Sharetea Pays $39,600 Penalty Over Franchise Breaches

The Australian Competition and Consumer Commission says the bubble tea franchisor breached the Franchising Code and has agreed to amend its agreements.

Updated on Nov. 2, 2026 in Tea

Sunlit wooden counter with a glass jar of pale tapioca pearls in a quiet, empty Australian shop interior. — The Australian Competition and Consumer Commission has secured $39,600 in penalties against Sharetea Australia Pty Ltd over franchise agreement terms affecting its 124 franchisees. AI Illustration. Upload story photo >

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Sharetea Australia Pty Ltd paid $39,600 in penalties after two infringement notices from the Australian Competition and Consumer Commission (ACCC) over alleged breaches of the Franchising Code of Conduct. The ACCC alleged that Sharetea's franchise agreements required franchisees to pay costs the company incurred settling disputes with franchisees.

Why it matters

The penalties highlight regulatory scrutiny of franchise agreements across Australia, where the ACCC expects franchisors to comply with the Franchising Code. Sharetea's agreement to amend its contracts may affect the terms its 124 franchisees operate under.

Sharetea paid $39,600 across two infringement notices issued by the ACCC for alleged Franchising Code breaches. The company had 124 franchise businesses across Australia as of November 2025, and the source does not specify which contract terms were amended.

The players

Australian Competition and Consumer Commission (ACCC)

The ACCC is Australia's national consumer protection and competition regulator, responsible for enforcing the Franchising Code of Conduct.

Sharetea Australia Pty Ltd

Sharetea is a bubble tea franchise system that began operating in Australia in 2012 and originated from a Taiwanese brand.

The details

The ACCC alleged that Sharetea's franchise agreements required franchisees to pay costs the franchisor incurred settling its own disputes with franchisees. Sharetea agreed to amend its franchise agreements after engaging with the regulator.

2012: Sharetea began operating its bubble tea franchise system in Australia.
November 2025: Sharetea had 124 franchise businesses across Australia.
March 2026: Luxottica Franchising Australia paid a $19,800 penalty for a Franchise Disclosure Register breach.
1 November 2026: The ACCC published its release on the Sharetea penalty payment.

Market Landscape

Enforcement under the Franchising Code of Conduct has recently reached a range of sectors, including Luxottica, Cash Converters and MTA alongside Sharetea. The pattern shows the ACCC focusing on franchise agreement terms and public register compliance rather than only on individual disputes.

Franchisees with existing Sharetea agreements should check whether their cost-sharing and exit terms have been amended following the ACCC's engagement. Prospective franchisees can review the Franchise Disclosure Register before signing any agreement.

The takeaway

Franchise agreements are subject to the Franchising Code of Conduct, and regulators are checking whether cost-shifting clauses comply with it. Prospective franchisees should read dispute and exit terms carefully before committing.