What is a franchise agreement?
It’s an “agreement in which a person (the franchisor) grants to another person (the franchisee) the right to carry on the business of offering, supplying or distributing goods or services in Australia under a system or marketing plan substantially determined, controlled or suggested by the franchisor or an associate of the franchisor” Franchising Code of Conduct.
When you are signing onto a franchise agreement, the franchisor must provide you with certain documents. At least 14 days before you sign the franchise agreement or make a deposit, the franchisor must provide you with; (A) a Copy of the Franchise Code of Conduct (B) Disclosure Document - which must include reasonable information about the franchise to make an informed decision; (C) The franchise agreement in its final form. The Franchisor must also have provided you with an Information Statement about the risks and rewards of franchising. Further details about franchising and the obligations can be found on the ACCC website.
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