Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_30a
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 30A
Character Range: 81676–82934

30A  Information and discussion about capital expenditure
 (1) This clause applies if a disclosure document for a franchise agreement discloses expenditure of the kind mentioned in paragraph 30(2)(a).
 (2) The franchisor must include in the disclosure document as much information as practicable about the 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.
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.
 (3) Before entering into, renewing or extending the term or scope of the agreement, the franchisor and the franchisee or prospective franchisee must discuss the expenditure.
 (4) The discussion must include a discussion of the circumstances under which the franchisee or prospective franchisee considers that the franchisee or prospective franchisee is likely to recoup the expenditure, having regard to the geographical area of operations of the franchisee or prospective franchisee.