Posted
on 26 November 2014
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...
Posted
on 21 November 2014
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 ...
Posted
on 20 November 2014
Our review of the changes to the Franchising Code of Conduct continues today looking at when franchisor will not be required to update a disclosure document.
The standard rule is that a disclosure document must be updated within 4 months of the end of financial year.
However, after 1 January, 2015 a franchisor is relieved of the obligation to update its disclosure document if:
1. the franchisor entered into or 1 or no franchise agreements during the year; and
2. the franchi...
