Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_31
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 31
Character Range: 82934–84585

31  Payments to and from marketing funds
 (1) This clause applies if a franchise agreement requires the franchisee to pay money to a marketing fund that is controlled or administered by or for the franchisor or a master franchisor (whether the franchisee is a franchisee or subfranchisee of the franchisor or master franchisor).
 (2) The fund administrator must maintain a separate account with a financial institution for payments to the marketing fund by franchisees.
Civil penalty: 600 penalty units.
 (3) If the franchisor or master franchisor operates one or more units of a franchised business, the franchisor or master franchisor must make payments to the marketing fund on behalf of each of those units on the same basis as franchisees of other units of the franchised business.
Civil penalty: 600 penalty units.
 (4) Despite any terms of a franchise agreement, the fund administrator must use payments to the fund only to:
 (a) meet expenses that:
 (i) have been disclosed to franchisees in the disclosure document in accordance with paragraph 15.1(f) of Annexure 1; or
 (ii) are legitimate expenses for marketing (however described); or
 (iii) have been agreed to by a majority of franchisees that are required to make payments to the fund; or
 (b) pay the reasonable costs of administering and auditing the fund.
Civil penalty: 600 penalty units.

Meaning of fund administrator
 (5) In this clause:
fund administrator means:
 (a) the franchisor or master franchisor who controls or administers the fund; or
 (b) if the franchisor or master franchisor has authorised an associate to control or administer the fund—the authorised associate.