Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:60
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 60
Character Range: 96519–97709

60  Franchisor may require only certain significant capital expenditure
 (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, other than as permitted by subsection (2).
Civil penalty: 600 penalty units.
 (2) For the purposes of subsection (1), the significant capital expenditure that the franchisor may require the franchisee to undertake is the following:
 (a) significant capital expenditure disclosed to the franchisee in a disclosure document as mentioned in subsection 20(4), if the disclosure document was given to the franchisee before the most recent of the following that is applicable:
 (i) entry into the agreement;
 (ii) renewal of the agreement;
 (iii) extension of the term of the agreement;
 (iv) extension of the scope of the agreement;
 (b) significant capital expenditure that is to be incurred by all or a majority of franchisees and is approved by a majority of those franchisees;
 (c) significant capital expenditure incurred by the franchisee to comply with legislative obligations;
 (d) significant capital expenditure agreed by the franchisee.