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The FCA closed receipt of all feedback regarding the ACCC’s finalisation of the update to the Model Disclosure Document (model DD).

DC Strategy Lawyers is keeping a close eye on all changes and requirements the ACCC will be making to update the model DD and we will keep you informed in a timely manner.

 What is a Disclosure Document?

The Franchising Code Conduct (Code) requires the franchisor to maintain a disclosure document. The franchisor is required to provide a disclosure document to a person proposing to enter into, renew or extend a franchise agreement.

The purpose of a disclosure document is to give a prospective franchisee key information about the franchise system, and an existing franchisee current information about the running of the franchise.

Information the franchisor is required to disclose includes:

  • Details of certain types of legal proceedings against the franchisor or its directors
  • Contact details of current as well as former franchisees (unless the former franchisee has requested in writing that their details not be disclosed)
  • The franchisee’s costs to start operating the franchised business and other payments or fees they may be required to make
  • Details of the arrangements that will apply when the franchise agreement comes to an end (including whether the franchisee will have an option to renew or extend the agreement or enter into a new agreement).

Content of the disclosure document

The disclosure document must adopt the format, order, headings and numbering used in Annexure 1 of the Code. It must also be signed by the franchisor, or a director, officer or authorised agent of the franchisor.

If no applicable information exists for a particular item of the disclosure document, you may delete the applicable headings from the disclosure document. However, you must list the deleted headings in an attachment so that the prospective or existing franchisee is aware of what information has not been provided.

The disclosure document must also contain a table of contents. If the disclosure document attaches other documents, these documents must be listed in the table of contents.

The ACCC has developed a model disclosure document – As soon as possible, we will take on board the updates and explain the tips on how to fill in the new details, to ensure you are compliant with your disclosure obligations under the Code.


Don’t Hesitate to Reach Out!

If you would like to learn more about how DC Strategy Lawyers can be of assistance, we are happy to talk. We know that each business is unique and it is not a case of one size fits all. Our initial meetings are an investment on our behalf. We take the time to assess your needs and determine an action plan to move forward together.

Call 1300 993 624 or legal@dcstrategy.com

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