Deadline approaching for franchisors to update the disclosure document

The Franchising Code of Conduct (the Code) requires a franchisor to update the disclosure document annually, within four months of the end of the financial year. The purpose of this annual update is to ensure new and existing franchisees receive current information about the network. One practical inconvenience of not updating the disclosure document by the deadline is that a franchisor cannot recruit new franchisees. This article will outline the:

• timeframe for attending to required updates;
• required scope of updates; and
• exceptions to the requirement for an annual update. 

What is the Timeframe for Attending to Required Updates? 

A franchisor may attend to the required updates any time after the end of the financial year. The Code allows a franchisor an additional four months from the end of the financial year to update the disclosure document. Therefore, the deadline is 31 October.