Last chance to update your Disclosure Document for 2017-2018
As a franchisor, you are aware that the Franchising Code of Conduct (the Code) requires you to update your Disclosure Document at least once a year before the due date.
For most Australian-based franchisors that date is between 1 July and 31 October.
Franchisors must issue a current Disclosure Document when recruiting franchisees. It is crucial that your Disclosure Document meets the necessary requirements and changes BEFORE the deadline which is 31 October 2017.
What do you need to do?
You need to provide:
- an updated 2017-2018 Disclosure Document with current information regarding your franchise network
- either financial statements for the last two completed financial years or an audit report from an independent auditor stating that the franchisor is solvent as at 30 June 2017; and
- an annual financial statement detailing the marketing fund’s receipts and expenses for the last financial year and have that statement audited.
What happens if you don’t?
Failing to comply with the above may result in getting audited by ACCC and/or being in breach of the Code.
Please also note that the marketing fund should operate out of a purpose-specific bank account. Additionally, any corporate owned operations/outlets are obliged to pay the same marketing levy/fee as your franchise agreement requires of the franchisees.
How DCS Lawyers can help?
DCS Lawyers can assist you in all corporate and commercial legal matters including the following:
- reviewing and updating your 2017-2018 Disclosure Document for a fixed fee; and
- assisting you to obtain the exemption on the audit of the marketing fund.
In addition, DCS Lawyers’ commercial colleagues who are part of the DC Strategy Group can assist with the preparation of an updated financial model based on the previous years’ Profit and Loss Statement for franchise recruitment.
Call Ashley Tan on (02) 8220 8702
or email – firstname.lastname@example.org
We look forward to assisting you with your annual legal requirements.
DCS Lawyers is a full service commercial and business law firm with specialist franchise and intellectual property expertise. We can assist you in drafting and reviewing a wide range of commercial and business documents and contracts. Our experienced lawyers focus on licensing, distribution and supply agreements, commercial and retail leasing solutions. We also provide a comprehensive service on business and corporate structuring, business sales and purchases, trade mark registration in Australia and internationally, employment law, specialist migration law and dispute resolution, mediation and litigation.
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