Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:27
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 27
Character Range: 48255–49792

27  Statements with respect to independent advice
 (1) A franchisor must not enter into a franchise agreement unless the franchisor has received from the prospective franchisee, in respect of advice from each kind of adviser mentioned in subsection (2):
 (a) a signed statement by that kind of adviser to the effect that the adviser has given the prospective franchisee advice about the proposed franchise agreement or franchised business; or
 (b) a signed statement by the prospective franchisee to the effect that the prospective franchisee:
 (i) has been given advice by that kind of adviser about the proposed franchise agreement or franchised business; or
 (ii) is aware of the need to obtain advice from that kind of adviser but has decided not to obtain it.
Civil penalty: 600 penalty units.
 (2) For the purposes of subsection (1), the kinds of advisers are the following:
 (a) an independent legal adviser;
 (b) an independent business adviser;
 (c) an independent accountant.

Exception to subsection (1)
 (3) Subsection (1) does not apply to:
 (a) the renewal of a franchise agreement; or
 (b) the extension of the term or scope of a franchise agreement.

Franchisor may require prospective franchisee to provide statements
 (4) Subsection (1) does not prevent the franchisor from requiring the prospective franchisee to give the franchisor a statement mentioned in paragraph (1)(a) before the franchisor enters into a franchise agreement with the prospective franchisee.

Part 4—Franchise agreements

Division 1—Application