Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_30
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 30
Character Range: 80837–81676

30  Significant capital expenditure not to be required
 (1) A franchisor must not require a franchisee to undertake significant capital expenditure in relation to a franchised business during the term of the franchise agreement.
Civil penalty: 600 penalty units.
 (2) For the purposes of subclause (1), significant capital expenditure excludes the following:
 (a) expenditure that is disclosed to the franchisee in the disclosure document that is given to the franchisee before:
 (i) entering into or renewing the agreement; or
 (ii) extending the term or scope of the agreement;
 (b) if expenditure is to be incurred by all or a majority of franchisees—expenditure approved by a majority of those franchisees;
 (c) expenditure incurred by the franchisee to comply with legislative obligations;
 (d) expenditure agreed by the franchisee.