Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_46b
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 46B
Character Range: 100446–101332

46B  Franchise agreement must provide reasonable opportunity for return on franchisee's investment
  A franchisor must not enter into a franchise agreement unless the agreement provides the franchisee with a reasonable opportunity to make a return, during the term of the agreement, on any investment required by the franchisor as part of entering into, or under, the agreement.
Note: If expenditure is disclosed in a disclosure document for a franchise agreement, the circumstances in which the expenditure is likely to be recouped must be discussed (see clause 30A).
Civil penalty:
 (a) for a contravention by a body corporate—the amount under clause 5A; or
 (b) for a contravention by a person who is not a body corporate—$500,000.

Division 2—End of term obligations
Note: Subdivision B of Division 2 of Part 3 does not apply to new vehicle dealership agreements (see clause 17A).