Franchise agreement and disclosure update 2019-20

Franchisors cannot recruit franchisees without an updated Disclosure Document, so it's important that franchisors are aware of this update. Under the Franchising Code of Conduct (the 'Code'), a franchisor is required to update their Disclosure Document annually. This must be updated within 4 months following the end of the financial year. If your financial year ends 30 June, the Disclosure Document for your franchise network needs to be updated on or before 31 October 2019.

Even if you may not be actively recruiting franchisees, there is always the possibility that either an existing franchisee or the ACCC will request a current Disclosure Document to be provided within 14 days. Therefore, it is important from a compliance and risk management point of view that you have updated your Disclosure Document in line with the requirements of the Code.