Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022

Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022

made under the Competition and Consumer (Industry Codes—Franchising) Regulations 2024

Compilation No. 1

Compilation date:   1 April 2025

Includes amendments up to: Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Amendment Determination 2025

Prepared by The Treasury

About this compilation

This compilation

This is a compilation of the Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022 that shows the text of the law as amended and in force on 1 April 2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary

1  Name 

3  Authority

4  Definitions

Part 2—Additional information to be provided to the Secretary

6  Additional information required to be provided in relation to franchisors that give a disclosure document to a prospective franchisee

7  Details of the additional information to be provided

Endnotes

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Part 1—Preliminary

1  Name

  This instrument is the Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022.

3  Authority

  This instrument is made under the Competition and Consumer (Industry Codes—Franchising) Regulations 2024.

4  Definitions

Note: Expressions have the same meaning in this instrument as in the Competition and Consumer (Industry Codes—Franchising) Regulations 2024 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.

  In this instrument:

Franchising Regulations means the Competition and Consumer (Industry Codes—Franchising) Regulations 2024.

Part 2—Additional information to be provided to the Secretary

6  Additional information required to be provided in relation to franchisors that give a disclosure document to a prospective franchisee

 (1) Under subsection 92(4) of the Franchising Regulations, each franchisor to which section 92 of the Franchising Regulations applies is determined as needing to provide the Secretary with the information covered by section 7 in relation to each disclosure document created by the franchisor.

 (2) However, subsection (1) does not apply to a disclosure document if:

 (a) the disclosure document relates to a franchise where the franchisor has entered into less than 2 franchise agreements; and

 (b) the disclosure document relates to a franchise where the franchisor does not intend, or if the franchisor is a company, its directors do not intend, to enter into franchise agreement.

7  Details of the additional information to be provided

 (1) All of the information specified by subsection (2) is covered by this section, unless the information is:

 (a) personal information that relates to an individual other than a franchisor; or

 (b) information that relates to a particular franchisee of a franchisor; or

 (c) information that relates to a particular site being occupied by a franchisee of a franchisor.

 (2) The following information is specified:

 (a) the number of years that the franchise or franchise system has operated in Australia;

 (aa) whether the franchisor, an associate of the franchisor, or a director of the franchisor or the associate, has been:

 (i) in the last 10 years—convicted of a serious offence (or equivalent offence outside Australia); or

 (ii) in the last 5 years—subject to final judgment in civil proceedings for a matter mentioned in item 4(1) of Schedule 1 to the Franchising Regulations; or

 (iii) bankrupt, insolvent under administration or a Chapter 5 body corporate (within the meaning of the Corporations Act) in Australia or elsewhere.

Note: For subparagraph (ii), the matters mentioned in item 4(1) of Schedule 1 to the Franchising Regulations include the following:

(a) breach of a franchise agreement;

(b) contravention of the Act or the Corporations Act;

(c) unconscionable conduct, misconduct or an offence of dishonesty;

(d) certain contraventions of workplace relations laws, other than unfair dismissal of an employee.

 (b) the number of existing franchised businesses and franchisees, and businesses owned or operated by the franchisor or an associate of the franchisor in Australia that are substantially the same as the franchised business;

 (c) each State or Territory in which a business or franchisee covered by paragraph (2)(b) operates;

 (d) in relation to a franchisor’s requirements for the supply of goods or services to a franchisee—whether there are restrictions on the acquisition of goods or services by the franchisee from other sources;

 (e) if the franchisor requires payment before a franchise agreement is entered into—why the money is required, how the money is to be applied, who will hold the money, and the conditions under which a payment will be refunded;

 (f) details of the costs payable by a franchisee to start operating the franchised business;

Example:  Details of costs may include upper and lower limits of potential costs, a description of potential costs or both).

 (g) details of payments payable by a franchisee to the franchisor, or an associate of the franchisor, during the term of the franchise agreement;

Example:  Details of payments may include upper and lower limits of potential payments, a description of potential payments or both).

 (h) details of payments payable by a franchisee to a person other than the franchisor or an associate of the franchisor;

Example:  Details of payments may include upper and lower limits of potential payments, a description of potential payments or both).

 (i) whether the franchise agreement may be varied, unilaterally, by the franchisor;

 (ia) whether the franchise agreement provides for arbitration of disputes in a manner consistent with Subdivision C of Division 2 of Part 5 of Chapter 2 of the Franchising Regulations;

 (j) the term of the franchise agreement;

 (k) whether a franchisee has an option to renew the franchise agreement;

 (l) whether a franchisee has any rights relating to any goodwill generated by the franchisee;

 (m) whether the franchise agreement includes a restraint of trade or similar clause;

Note: The information mentioned in paragraphs (a) to (m) relates to certain items in Schedule 1 to the Franchising Regulations (for example, paragraph (i) relates to item 17 of Schedule 1 to the Franchising Regulations).

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history