Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_15
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 15
Character Range: 50515–52840

15  Financial statements for marketing funds and other cooperative funds administered by or for franchisor or master franchisor
 (1) This clause applies if a franchise agreement requires the franchisee to pay money to a marketing fund or other cooperative fund 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).

Preparing and auditing financial statements for fund
 (2) The fund administrator must:
 (a) within 4 months after the end of the last financial year, prepare an annual financial statement detailing all of the fund's receipts and expenses for the last financial year; and
 (b) ensure that the statement includes sufficient detail of the fund's receipts and expenses so as to give meaningful information about:
 (i) sources of income; and
 (ii) items of expenditure, particularly with respect to marketing (however described); and
 (c) have the statement audited by a registered company auditor within 4 months after the end of the financial year to which it relates.
Civil penalty: 600 penalty units.
 (3) The fund administrator does not have to comply with paragraph (2)(c) in respect of a financial year if, within 3 months after the end of the year, 75% of the franchisees (whether franchisees or subfranchisees of the franchisor or master franchisor) in Australia who contribute to the fund have voted to agree that the fund administrator does not have to comply with the paragraph in respect of the year.

Giving copies of statements and audit reports to contributors to fund
 (4) The fund administrator must:
 (a) give the franchisee a copy of the statement within 30 days of preparing it; and
 (b) if an audit of the statement is required—give the franchisee a copy of the auditor's report within 30 days of receiving it.
Civil penalty: 600 penalty units.

Costs of administering and auditing fund
 (5) The reasonable costs of administering and auditing the fund must be paid from the fund.

Meaning of fund administrator
 (6) 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.