Franchise Disclosure
Documents

Preparing a franchise disclosure document is an important part of your responsibility as a franchisor. Our legal team will work with you to create or update your disclosure document, ensuring it is applicable to the Franchising Code of Conduct.

A franchise disclosure document is required by law to be issued to all prospective franchisees, and is designed to give potential franchisees basic information about your business and your past experience. This information must be prepared each year in accordance with the requirements of the Franchising Code of Conduct before any franchise agreement can be signed. The disclosure document must be issued to the prospective franchisee at least 14 days before the franchise agreement is signed or any payments are made, so they are given a chance to review the documents and seek independent advice. The disclosure document is intended to provide an overview of the franchise business and costs involved. Be prepared to share some confidential details, as the Franchising Code of Conduct is quite specific about what must be included. Information such as your business experience and the contact details of existing and past franchisees will need to be disclosed, as well as financial information about your business.

You will also need to include an outline of franchisor and franchisee obligations, details relating to the marketing fund, franchise territory information, operational obligations and details regarding the use of intellectual property. The franchise disclosure document must be constructed very carefully, as it is often reviewed by the Courts in any legal dispute between franchisors and franchisees. It is also a crucial to the franchise recruitment process, as this is what potential franchisees will review prior to signing on with your franchise system. The disclosure document must always contain current information, so you should have it reviewed every year by a competent franchise lawyer. Our franchise lawyers understand the importance of the franchise disclosure document. We will work with you to ensure this sensitive information is conveyed appropriately and in compliance with the law. Applying knowledge and expertise, we can advise you on what to include, how to word it and what potential issues could arise.

Franchise news and updates

Franchise Legal Advice
Franchise ConsultingFranchise Legal Advice
September 21, 2016

What can go wrong when selling your business? Tips to help you to sell your franchise business without the headache.

In an ideal world, you would sell your franchised business quickly and for a profit. But as well all know, this isn’t always the case. There are a large number of things that can get…
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Franchise Legal
Franchise Legal Advice
August 24, 2016

Terminating a Franchise Agreement

Franchisees are essential to a successful franchise system. A good Franchisee is a brand ambassador who dedicates their time, money and energy into their franchise business. But what happens when a Franchisee isn’t doing their…
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Franchise Lawyers
Franchise Legal Advice
August 8, 2016

Changes in Unfair Contract Terms

The legislation around unfair contracts for consumers has been extended to include standard form contracts for small businesses. The ACCC is focused on protecting small businesses from unfair contracts. Particularly in relation to franchising, retail…
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Franchise Law Done Right
Franchise Legal Advice
July 18, 2016

What’s the point in mediation? Lessons on handling franchise disputes

For both franchisors and franchisees, mediation is a slightly mysterious process. One party issues a Notice of Dispute to the other -  then several months later you end up in a bland office somewhere in…
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Franchise Legal AdviceNews and Events
June 28, 2016

Disclosure Document Update Time is Here!

As a franchisor, the Code requires you to update your Disclosure Document at least once a year and within 4 months of the end of your financial year. This means that for most Australian-based franchisors…
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