Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_8
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 8
Character Range: 32463–35149

8  Franchisor must maintain a disclosure document

Disclosure document to inform franchisee or prospective franchisee
 (1) A franchisor must create a document (a disclosure document) relating to a franchise that complies with subclauses (3), (4) and (5).
Civil penalty: 600 penalty units.
 (2) The purpose of a disclosure document is to:
 (a) give a prospective franchisee, or a franchisee proposing to:
 (i) enter into a franchise agreement; or
 (ii) renew a franchise agreement; or
 (iii) extend the term or scope of a franchise agreement;
  information from the franchisor to help the franchisee to make a reasonably informed decision about the franchise; and
 (b) give a franchisee current information from the franchisor that is material to the running of the franchised business.

Content and form of disclosure document
 (3) Information in a disclosure document must:
 (a) comply with the following:
 (i) be set out in the form and order of Annexure 1;
 (ii) use the headings and numbering of Annexure 1;
 (iii) if applicable—include additional information under the heading "Updates"; or
 (b) comply with the following:
 (i) if particular items are applicable—use the headings and numbering of Annexure 1 for those items;
 (ii) if particular items are not applicable—include an attachment that sets out the headings and numbering of Annexure 1 for those items.
 (4) A disclosure document must be signed by the franchisor, or a director, officer or authorised agent of the franchisor.
 (5) A disclosure document must also have a table of contents based on the items in Annexure 1, indicating the page number on which each item begins. If the disclosure document attaches other documents, the table of contents must list these other documents too.

Maintaining a disclosure document
 (6) After entering into a franchise agreement, the franchisor must update the disclosure document within 4 months after the end of each financial year.
Civil penalty: 600 penalty units.
 (7) However, the franchisor need not update the disclosure document after the end of a financial year if:
 (a) the franchisor did not enter into a franchise agreement, or only entered into 1 franchise agreement, during the year; and
 (b) the franchisor does not intend, or if the franchisor is a company, its directors do not intend, to enter into another franchise agreement in the following financial year.
 (8) Despite subclause (7), if a request is made under subclause 16(1), the franchisor must update the disclosure document so that it reflects the position of the franchise as at the end of the financial year before the financial year in which the request is made.
Civil penalty: 600 penalty units.