If there is one things Franchisors should be doing this week (yes, apart from updating disclosure documents, amending franchise agreements, appraising themselves of the new law and reviewing policies and procedures...) you need to ensure that Information Sheets are given to a prospective franchisee when it formally applies or expresses an interest in acquiring a franchised business. You still have to comply with all of the other Code requirements, but as a first step make sure you are ...

The new Franchising Code of Conduct requires franchisors to keep originals or copies of all written things a franchisee or a prospective franchisee is required to give (or may give) under the Code. This will apply to things such as: 1. a notice requesting a copy of the disclosure document from a current franchisee; 2. a vote for non-audit of a marketing fund; 3. a request by a previous franchisee not to disclose contact details; and 4. request to consent to transfe...

One bugbear under the current Franchising Code of Conduct relates to the requirement to redisclose to a franchisee if amendments are made to the franchise agreement after the initial disclosure takes place. Let me paint the picture for you, the franchise agreement is prepared together with all other associated documents, disclosure is made to the franchisee, the franchisee negotiates changes to the franchise agreement and thus we have to undertake the disclosure process again and ...