The Register went live on 14 November 2022. The basic mandatory information that must be disclosed by Franchisors on the Register includes:
• Name, trading name and ABN
• Business email address and contact phone number
• Address(es) of the franchisor
• Industry division and subdivision
• Financial year on which the franchisor operates
Franchisors who have to update their disclosure document are required to provide even
more information, including:
• History and experience of the Franchisor
• Restrictions on suppliers that franchisees can use
• Start up and ongoing payments, costs and fees for a franchisee
• Terms and renewal details of a standard franchise agreement
• Restraint of trade on franchisees
All of the requirements are set out in the Franchising Code and this government Determination. If you are Franchisor wondering that this sounds really familiar, you are right, it is. It basically is a shorter summary of the information and disclosures that Franchisors are already required to make under the Franchising Code. It will come as no surprise that some Franchisors have opted to upload their disclosure documents and franchise agreements rather then re-enter the same information. Franchisors must confirm or update the information at least once a financial year. Failure to disclose the required information or to update it annually can result in civil penalties of up to $165,000. Please keep in mind that disclosure on the Register does not replace a Franchisor’s obligations to provide key disclosure documents to franchisees and prospective franchisees under the Franchising Code.
Franchisor’s should be carefully checking and updating their franchise agreement and related documents. There are increased disclosure requirements and penalties for having unfair contract terms due to recent and upcoming changes to the
Franchising Code and Australian Consumer Law.
The implications and fines for non-compliance are huge. For example, some penalties have or will increase to the greater of $50 million or three times the value derived from the relevant breach, or 30% of the company’s turnover during the period it engaged in the conduct.
plans to review the Register and franchising regulatory framework later this year. There is
more to come.
The team at Milicevic Lawyers has extensive experience in franchising law and can help you
with all of your franchising needs. We can check and help you comply with all Register and
disclosure requirements, prepare disclosure documents, franchise agreements and other
related documents. We can also represent you in any disputes that may arise.
To learn more about how we can help you, please contact us .