Government updates franchising key facts sheet

On 26 August the Government updated the franchising key facts sheet which franchisors must provide to franchise buyers.

Franchisors must complete the key facts sheet and ensure prospective franchisees receive a copy, along with other disclosure related documents as required by the Franchising Code of Conduct.

Prospective franchisees need to receive these at least 14 days before they enter into a franchise agreement or pay non-refundable money.

In the case of franchise buyers acquiring a business from an existing franchisee, they must receive the documents at least 14 days before the franchisor consents to the transfer.

Any franchisee renewing or extending a franchise agreement, and any franchisee who asks for the disclosure document in writing, must receive an up-to-date key facts sheet.

The key facts sheet must be in the format prescribed and include all the required information.

There is both a Smart Form and a pdf version available.

A key facts sheet has been part of franchising procedures since 1 July 2021 when revisions and additions to the Franchising Code of Conduct were introduced following a lengthy process of inquiry, taskforce review, and industry consultation.