If you are a franchisor in Australia you will know that you must update your disclosure document every year to comply with the Franchising Code.
If you have a 30 June end of financial year then you should also know that it has to be completed by 31 October.
This means having last financial year's financial statements to add to the disclosure document or an audit report. (Note – chase up the accountant!)
This October deadline you still have to do these things as usual but you will also have to make sure that you use the new form of disclosure document which was introduced with the new Code on 1 January.
It is not acceptable to use last year's document and just change the dates and update the franchisee information.
ALERT- the new Code also introduced penalties for breaching it so you could be hit with a fine from the ACCC if you don't use the new form of disclosure document and have it updated by 31 October 2015.
You cannot issue a new franchise agreement after 31 October 2015 without the new form of disclosure document.
And if you haven't done so already, get a franchise lawyer to look over your franchise agreement as well to make sure it also doesn't breach the new Code.
The changes this year mean your lawyer will appreciate getting plenty of notice to update your disclosure document and review your franchise agreement.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
