As part of the tightening regulatory framework within the franchising industry in Australia, where a prospective franchisee expresses an interest or formally applies to buy a franchise, franchisors must give them an Information Statement.
As from 15 April 2022, the Information Statement must be provided as soon as practicable but not later than 7 days after a prospective franchisee expresses an interest.
The Information Statement is a prescribed document under the Franchising Code of Conduct that highlights various aspects related to franchising, such as:
details about what is franchising;
cooling off rights;
risks and benefits in regards to entering into a franchise arrangement;
types of franchise costs to be aware of;
outline of issues to consider before committing to a franchise;
where to get further information about franchising;
links to free franchise education;
Before entering into a franchise it is important to obtain legal advice from lawyers experienced in franchise law. Greyson Legal | Franchise Lawyers are exerts in franchise law.