Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:23:p1
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 23 (pt 1/3)
Character Range: 39367–42179

23  Entering into, renewing and extending franchise agreements

Application
 (1) This section applies to a franchisor if:
 (a) the franchisor proposes to enter into a franchise agreement with a prospective franchisee; or
 (b) the franchisor, or a franchisee (within the meaning of paragraph (a) of the definition of that expression), proposes to:
 (i) renew a franchise agreement; or
 (ii) extend the term or scope of a franchise agreement.

Documents that franchisor must give prospective franchisee
 (2) The franchisor must give the prospective franchisee the following documents:
 (a) a copy of the franchise agreement, in the form in which it is to be executed;
 (b) if:
 (i) premises are leased to the franchisor or an associate of the franchisor; and
 (ii) the franchisor or associate proposes to sublease the premises to the prospective franchisee for the purposes of a franchised business, or to permit the prospective franchisee to occupy the premises for those purposes without a lease;
  a copy of:
 (iii) the lease of the premises to the franchisor or associate or, if the franchisor or associate is not in possession of the lease, a summary of the commercial terms negotiated by the franchisor or associate and the lessor of the premises (including any lease incentives); and
 (iv) if the lessor of the premises to the franchisor or associate complies with a requirement by or under a law of a State or Territory to disclose to the franchisor or associate (as lessee) written information relating to the lease—that information or, if the franchisor or associate is not in possession of that information, any information of that kind of which the franchisor is aware;
 (c) if the prospective franchisee has not given the franchisor a written notice under subsection (4)—the documents mentioned in subsection (5).
Note: If it is proposed that the prospective franchisee lease premises from, or occupy premises under another right granted by, the franchisor or an associate, section 50 lets the franchisee terminate the franchise agreement up to 14 days after being given a document setting out the terms of the lease or right to occupy the premises.

Changes to franchise agreement
 (3) If, after giving the prospective franchisee a copy of the franchise agreement, and before the agreement is executed, the franchisor makes a change to the agreement, the franchisor must give the prospective franchisee a copy of the changed agreement.

Documents that prospective franchisee may opt out of receiving
 (4) The prospective franchisee may, by written notice given to the franchisor, opt out of being given the documents mentioned in subsection (5) if:
 (a) the prospective franchisee has, or has recently had, another franchise agreement with the franchisor that is the same or substantially the same as