The changes that relate to disclosure documents apply to any and all disclosure documents given on or after 1 November 2021
In our article (found here) dated 26 July 2021, we summarised some of the recent key changes to the Franchising Code of Conduct which attempts to adjust the balance of power in favour of franchisees via:
We remind readers that the disclosure amendments include requiring franchisors to provide prospective franchisees with:
Now that the disclosure amendments have taken effect, it is timely to provide additional details of some of the amendments relating to same:
Franchisors must give disclosure documents to prospective franchisees at least 14 days before entering a franchise agreement or making a non-refundable payment (failing which penalties apply).
Should parties enter a franchise agreement, readers are reminded that the cooling off period has been extended from 7 to 14 days.
We continue to recommend:
If you have any questions about how the changes to the Code affect you or your franchise agreement, contact Gavin Parsons and Associates on (02) 9262 4471.