Did you know that today is the final day to register on the new Franchise Disclosure Register?
Franchisors in Australia are required under the Franchise Code of Conduct (Code) to create a profile and upload their information into the Register by 14 November 2022. The Register will become available to the public tomorrow on Tuesday 15 November.
Franchisors are expected to play an active role in providing documentation required under Division 2 of the regulations for inclusion in the register. These documents include:
- A Disclosure Document
Under the regulations, all existing franchisors are under the obligation to provide a disclosure document to be uploaded on the register. Franchisors must ensure their disclosure document was updated by 30 June 2022 or alternatively provide their most recently updated disclosure document for inclusion in the Register before 14 November 2022. Annexure 1 of the Code remains to prescribe all necessary information that must be included in a disclosure document for pre-existing and prospective franchisees. Franchisors must also take necessary precautions and redact inadmissible information such as personal information in deference to the Privacy Act and commercially sensitive information regarding rebates, before uploading disclosure documents on to the portal.
- Identifying Business Information
In addition to the disclosure document, the Clause 53A stipulates that franchisors are to provide certain identifying business information, to appear on the businesses profile page. Specifically, the name of the franchisor and the name under which a franchise system trades in Australia are essential in order to increase the functionality of the register and allow users to easily identify Franchises. In addition, the publication of ANZSIC industry classification information will be necessary to both assist in the identification of franchises and allow for searches to be sorted by sector. These provisions enhance the accessibility of important information through the Register.
- Other Information and documents that a franchisor may choose to provide for inclusion
Franchisors also have the flexibility to elect to publish any further information they see necessary for Franchisees to access when undertaking their due diligence. For example, franchisors may wish to include on the portal a brief description of their business and their contact details so prospective franchisees are informed as to how to get in touch with an organisation to discuss franchising opportunities.
If you are yet to register, please contact Coleman Greig’s Commercial Advice team immediately and we would be more than happy to assist you.