Franchise Disclosure Register - important update

Following on from our article, HOCW’s Franchise Series – Franchise Disclosure Register - Franchisors it's time to register, published 28 October 2022, more information must now be included on franchisor’s profiles on the Register.

On Friday, 11 November 2022, a legislative determination was made to broaden the scope of mandatory information to be included in franchisors’ profiles on the Register. Franchisors that have already created a profile or have not created one yet must ensure that by no later than 14 November 2022, they amend or create their profile to include all of the information set out below.

Notwithstanding that the determination may be considered last minute, Franchisors should not infer that they will be forgiven for failing update or create a compliant profile in time.

Franchisors must amend/create their profile to include:

• the name of the franchisor entity
• the name under which the franchisor carries on business in Australia relevant to the franchise
• if the franchisor has an ABN—the franchisor’s ABN
• the address, or addresses, of the franchisor’s registered office and principal place of business in Australia
• the business telephone number and email address of the franchisor
• the ANZSIC division and subdivision codes for the industry in which the business of the franchise operates
• the number of years that the franchise or franchise system has operated in Australia
• the number of existing franchised businesses and franchisees, and businesses owned or operated by the franchisor or an associate of the franchisor in Australia that are substantially the same as the franchised business
• each State or Territory in which a business or franchisee in the franchise system operates
• in relation to a franchisor’s requirements for the supply of goods or services to a franchisee—whether there are restrictions on the acquisition of goods or services by the franchisee from other sources
• if the franchisor requires payment before a franchise agreement is entered into—why the money is required, how the money is to be applied, who will hold the money, and the conditions under which a payment will be refunded
• details of the costs payable by a franchisee to start operating the franchised business
• details of payments payable by a franchisee to the franchisor, or an associate of the franchisor, during the term of the franchise agreement
• details of payments payable by a franchisee to a person other than the franchisor or an associate of the franchisor
• whether the franchise agreement may be varied, unilaterally, by the franchisor
• the term of the franchise agreement
• whether a franchisee has an option to renew the franchise agreement
• whether a franchisee has any rights relating to any goodwill generated by the franchisee
• whether the franchise agreement includes a restraint of trade or similar clause.

Please call Vincent Caruso on 03 9550 4600 for assistance in amending or creating your profile on the Franchise Disclosure Register.