Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:34:p1
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 34 (pt 1/2)
Character Range: 58020–60788

34  Disclosure of materially relevant facts

Financial details
 (1) If:
 (a) either:
 (i) a statement or declaration referred to in item 21 of Schedule 1 is made; or
 (ii) a document referred to in that item comes into existence; and
 (b) the statement or declaration is not reflected in, or the document is not provided together with, a disclosure document that has been updated under section 21 or 33;
the franchisor must give a franchisee or a prospective franchisee a copy of the statement, declaration or document:
 (c) as soon as reasonably practicable; and
 (d) in relation to a prospective franchisee—before the prospective franchisee enters into a franchise agreement with the franchisor.
Civil penalty:
 (a) for a contravention by a body corporate—the amount under section 17; or
 (b) for a contravention by a person who is not a body corporate—$500,000.

Other matters
 (2) If a disclosure document does not mention a matter mentioned in subsection (3), the franchisor must tell a franchisee or prospective franchisee about the matter, in writing, within a reasonable time (but not more than 14 days) after the franchisor becomes aware of it.
Civil penalty:
 (a) for a contravention by a body corporate—the amount under section 17; or
 (b) for a contravention by a person who is not a body corporate—$500,000.
 (3) For the purposes of subsection (2), the matters are the following:
 (a) change in majority ownership or control of:
 (i) the franchisor or an associate of the franchisor; or
 (ii) the franchise system;
 (b) proceedings by a public agency, a judgment in criminal or civil proceedings or an award in an arbitration against the franchisor, a franchisor director, an associate of the franchisor or a director of an associate of the franchisor, in Australia alleging:
 (i) breach of a franchise agreement; or
 (ii) contravention of the Act; or
 (iii) contravention of the Corporations Act; or
 (iv) unconscionable conduct; or
 (v) misconduct; or
 (vi) an offence of dishonesty;
 (vii) contravention of subsection 558B(1) or (2) of the Fair Work Act; or
 (c) civil proceedings in Australia against the franchisor, a franchisor director, an associate of the franchisor or a director of an associate the franchisor, by at least 10%, or 10, of the franchisees in Australia of the franchisor (whichever is the lower);
 (d) any judgment that is entered against the franchisor or an associate of the franchisor in Australia, and is not discharged within 28 days, for at least:
 (i) for a small proprietary company (within the meaning of the Corporations Act)—$100,000; or
 (ii) for any other company—$1,000,000;
 (e) any judgment that is entered against the franchisor or an associate of the franchisor in a matter mentioned in item 4 of Schedule 1;
 (f)