It has come to our attention that many franchisor's are not aware of the new Franchising Code of Conduct or the requirements upon them to update their disclosure document.
If you are one of these franchisors it is not too late.
In fact you need to take action now to ensure you are complying with your obligations.
a failure to comply with your obligations may lead to a penalty, ACCC audit, ACCC proceedings against you and so on.
You should seek urgent specialist franchising law advice about your obligations and what you need to fulfil them.
Many of the procedures we had under the previous Code remain the same. However, there are new procedures with which you must comply in addition to those.
For example, you must issue an Information Statement in the form required under the New Code. The form required specifies font size and the number of pages.
If you are issuing documents required to be given under the Code via email, you should seek the consent of the franchisee in writing prior to issuing them by this means.
You must keep a copy of all documents the franchisee is required to give you under the New Code. You should update your procedures to ensure your record keeping is exemplary.
Don't be surprised if the ACCC issues an audit notice to ensure you are complying with your obligations.
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