Document ID: chunk:federal_register_of_legislation:F2024L01605:clause:1_14:p1
Version: federal_register_of_legislation:F2024L01605
Segment Type: clause
Provision Reference: sch 1 cl 14 (pt 1/2)
Character Range: 157529–160394

14  Significant capital expenditure, and payments other than payments to agents

Significant capital expenditure
 (1A) Whether the franchisor will require the franchisee to undertake significant capital expenditure in relation to the franchised business during the term of the franchise agreement.
 (1B) As much information as practicable about any such expenditure, including the following:
 (a) the rationale for the expenditure;
 (b) the amount, timing and nature of the expenditure;
 (c) the anticipated outcomes and benefits of the expenditure;
 (d) the expected risks associated with the expenditure.
Note: For example, the information could include the type of any upgrades to facilities or premises, any planned changes to the corporate identity of the franchisor's brand and indicative costs for any building materials.

Prepayments
 (1) If the franchisor requires a payment before the franchise agreement is entered into—why the money is required, how the money is to be applied and who will hold the money.
 (2) The conditions under which a payment will be refunded.

Establishment costs
 (3) Details of the range of costs to start operating the franchised business, based on current practice, for the following matters:
 (a) real property, including property type, location and building size;
 (b) equipment, fixtures, other fixed assets, construction, remodelling, leasehold improvements and decorating costs;
 (c) inventory required to begin operation;
 (d) security deposits, utility deposits, business licences, insurance and other prepaid expenses;
 (e) additional funds, including working capital, required by the franchisee before operations begin;
 (f) other payments by a franchisee to begin operations.
 (4) For item 14(3), the details for each payment must include:
 (a) a description of the payment; and
 (b) the amount of the payment or the formula used to work out the payment; and
 (c) to whom the payment is made; and
 (d) when the payment is due; and
 (e) whether the payment is refundable and, if so, under what conditions.
 (5) For item 14(4), if the amount of the payment cannot easily be worked out—the upper and lower limits of the amount.

Other payments
 (6) For each recurring or isolated payment payable by the franchisee to the franchisor or an associate of the franchisor or to be collected by the franchisor or an associate of the franchisor for another person:
 (a) description of the payment; and
 (b) amount of the payment or formula used to work out the payment; and
 (c) to whom the payment is made; and
 (d) when the payment is due; and
 (e) whether the payment is refundable and, if so, under what conditions.
 (7) For each recurring or isolated payment, that is within the knowledge or control of the franchisor or is reasonably foreseeable by the franchisor, that is payable by the franchisee to a person other than