Assisted by Kristina Tato
Each year,
the ACCC receives around four hundred complaints about
franchising, and inadequate disclosure by franchisors is
consistently one of the top two Franchising Code issues that is
being reported. Recently, the ACCC released a
Disclosure practices in food franchising report,
following it, undertaking targeted compliance checks on twelve
different franchisors in the food services sector, due to concerns
that prospective franchisees were not being provided with adequate
disclosure.
In order for the prospective franchisee to make a reasonably
informed decision, the franchisee must be provided with information
regarding the franchise prior to entering into a franchise
agreement, as per the
Franchising Code of Conduct. The disclosure document
must be provided to the prospective franchisee at least fourteen
days before entering the franchise agreement.
