ACCC Report Requires Franchisors To Consider The Quality Of Information Provided In Disclosure Documents
Before completing the annual update of your disclosure document, Franchisors need to be aware of the recent ACCC report regarding the inadequacies uncovered by compliance checks in the food services sector. The findings highlighted that many franchisors are not providing sufficient details in their disclosure documents. Inadequate disclosure may amount to breaches of the Franchising Code of Conduct.
On Friday 23 August 2019, the Franchising Taskforce (established by the Government to examine the feasibility and implementation of recommendations proposed in the Parliamentary Joint Committee on Corporations and Financial Services’ Fairness in Franchising report) released an Issues Paper.
The Issues Paper invites input from the franchising community by asking 23 specific questions regarding 7 draft policy principles developed by the Taskforce.
Franchisors, the time has come to review and update your Disclosure Document for the financial year ending 30 June 2019.
The Franchising Code of Conduct requires franchisors to update their Disclosure Documents within four months of the end of their financial year. For most franchisors, this will mean their Disclosure Documents must be updated by 31 October 2019.