We give all Franchisors a further reminder that your annual update to your Disclosure Document is due now. Inadequate disclosure can result in fines of up to $10 million dollars for breaches of the Code.
As we detailed in our earlier article, dated 5 October 2021, the Government has recently introduced a new publicly accessible Franchise Disclosure Register. Its purpose is to give Franchisees, Prospective Franchisees and the general public greater transparency when entering into a franchise.
Remember, it is mandatory for all Franchisors to upload their Disclosure Documents to the Register by 31 October 2022.
The Register will not retain past versions of Disclosure Documents and all Franchisors will be expected to maintain a current Disclosure Document on the Register each year.
The Register is a free platform aimed at helping Franchisees conduct proper due diligence by making informed business decisions before they enter into a franchise arrangement.
Note that any assignments and new franchise grants must comply with the new disclosure requirements.
If your Disclosure Document needs updating (not just for registration), please contact a member of our team for assistance.
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