Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_18:p1
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 18 (pt 1/2)
Character Range: 156606–159445

18  Term of agreement and arrangements to apply at the end of the franchise agreement
 18.1 Details of arrangements to apply at the end of the franchise agreement, including:
 (aa) the term of the franchise agreement; and
 (a) whether the prospective franchisee will have an option to:
 (i) renew the franchise agreement; or
 (ii) enter into a new franchise agreement; and
 (b) whether the prospective franchisee will be able to extend the term of the franchise agreement, and if so, the processes the franchisor will use to determine whether to extend the term of the franchise agreement; and
 (c) if the prospective franchisee will have an option to renew the franchise agreement—whether the prospective franchisee will be entitled to compensation at the end of the agreement if it is not renewed and, if so, how that compensation will be determined; and
 (d) details of the arrangements that will apply to unsold stock, marketing material, equipment and other assets purchased when the franchise agreement was entered into, including:
 (i) whether the franchisor will purchase the stock, marketing material, equipment and other assets; and
 (ii) if the franchisor is to purchase the stock, marketing material, equipment and other assets—how prices will be determined; and
 (e) whether the prospective franchisee will have the right to sell the business at the end of the franchise agreement; and
 (f) if the prospective franchisee will have the right to sell the business at the end of the franchise agreement—whether the franchisor will have first right of refusal, and how market value will be determined; and
 (fa) the prospective franchisee's rights relating to any goodwill generated by the franchisee (including, if the franchisee does not have a right to any goodwill, a statement to that effect); and
 (g) whether the franchisor will consider any significant capital expenditure undertaken by the franchisee during the franchise agreement, in determining the arrangements to apply at the end of the franchise agreement; and
 (h) whether the franchise agreement includes a restraint of trade or similar clause.
 18.2 Details of whether the franchisor has, in the last 3 financial years, considered any significant capital expenditure undertaken by franchisees, in determining the arrangements to apply at the end of franchise agreements between the franchisor and those franchisees.
 18.3 If the franchisee does not have the option to renew the franchise agreement, the following statement must be included in bold 12 point type:
  The franchisee does not have the option to renew the franchise agreement. At the end of the franchise agreement, the franchisor may, but does not have to, extend the term of the agreement. If the franchisor does not extend the term of the agreement, the franchise agreement ends and the franchisee