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.
