Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:44
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 44
Character Range: 71927–72640

44  Franchise agreement must provide reasonable opportunity for return on franchisee's investment—general
 (1) This section applies to a franchise agreement that is not a new vehicle dealership agreement.
 (2) A franchisor must not enter into a franchise agreement unless the agreement provides the franchisee with a reasonable opportunity to make a return, during the term of the agreement, on any investment required by the franchisor as part of entering into, or under, the agreement.
Note: If expenditure is disclosed in a disclosure document for a franchise agreement, the circumstances in which the expenditure is likely to be recouped must be discussed (see section 47).
Civil penalty: 600 penalty units.