What is the Franchise Disclosure Register?

In Short

• Franchisors must create and maintain a public profile on the Franchise Disclosure Register each financial year.
• The Register helps potential franchisees assess franchise systems before committing.
• Updates are due by 31 October annually, with penalties for non-compliance.

Tips for Businesses
If you run a franchise, ensure your Register profile is accurate and up to date. At a minimum, provide your business name, ABN, and contact details. Uploading disclosure documents is optional but encouraged. Remember to remove any personal or sensitive information before publishing. Update your listing by 31 October each year.

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Table of Contents

• Franchise Disclosure Register
• Ongoing Reporting Requirements
• Purpose of the Register
• I Am a Franchisor: What Does This Mean For Me?
• Key Takeaways
• Frequently Asked Questions

The Franchise Disclosure Register has been in effect since November 2022, and it is a key transparency initiative under the Franchising Code of Conduct. The Register enables anyone to access information about franchise systems operating in Australia, helping prospective franchisees make more informed decisions. If you operate a franchise, it is essential to understand your ongoing obligations and ensure your Register listing is accurate and up to date.

This article outlines some important information to note about the Franchise Disclosure Register and how it affects you.

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Franchise Disclosure Register

The Franchise Disclosure Register provides an accessible method for prospective franchise owners to educate themselves before purchasing a franchise. It provides self-service access to disclosure documents and gives potential buyers details of the franchise system and network, including the establishment and ongoing costs. 

Notably, the Register is accessible to everyone. Franchisors need to provide the Register:

• the name of their business;
• a registered business name;
• their ABN;
• the address of the franchisor’s registered office;
• the franchisor’s principal place of business in Australia;
• the franchisor’s contact details; and
• the ANZSIC codes for the industry in which the franchise operates.

Franchisors may also choose to upload other documents to the Register, including a:

• disclosure statement;
• key facts sheet; and
• a standard franchise agreement.

Furthermore, before providing the above documents for inclusion in the Register, you must remove any:

• personal information that relates to anyone other than the franchisor; 
• commercially sensitive information; and
• information that relates to a franchisee or a particular site that a franchisee uses.

Ongoing Reporting Requirements

Franchisors have an ongoing requirement to update the Register. Moreover, this includes confirming that all the information on the Register is current. Further, you must update this information by the 31st of October every financial year. You can find more information in the Australian Treasury’s supporting guide.

Additionally, as a franchisor, you can choose to publish your disclosure documents and key fact sheets within the same financial year that you receive or create them.

Purpose of the Register

Primarily, the Franchise Disclosure Register aims to increase transparency and access to disclosure information for franchisors and franchisees. As a result, prospective buyers and potential franchisees can educate themselves before entering franchise agreements. Additionally, the Register will likely help to enhance the reputation of the franchising industry as a whole. However, in a more general sense, the Register exists to motivate high-quality disclosure practices across a range of business areas. 

Furthermore, the Register exists alongside other obligations and requirements set out in the Franchising Code of Conduct. As such, franchisors still need to comply with the disclosure requirements before becoming a franchisee and entering into a Franchise Agreement. 

I Am a Franchisor: What Does This Mean For Me?

All franchise systems operating within Australia must participate in the Franchise Disclosure Register. However, you will not need to provide a disclosure document if you are a franchisor who enters into one franchise agreement within a financial year with no intention of entering another in the next financial year. Instead, you will only need to provide your contact details.

Although, as a general rule, if you are a franchisor, you will need to:

• create a franchise profile on the Register;
• publish critical disclosure information about your franchise; and
• maintain a presence on the Register. 

You may also want to authorise a representative to access the Register on your behalf. In that case, you must provide your authority using the Relationship Authorisation Manager.

Key Takeaways

Whether you are a franchisor or a prospective franchisee, it is essential to understand how the Franchise Disclosure Register works and what it means for you. Some key things to note about the Register are that it:

• requires franchisors to create and maintain a profile each financial year;
• must be updated by 31 October annually to remain compliant;
• allows franchisors to upload disclosure documents, a key facts sheet, and a sample franchise agreement (optional but recommended); and
• prohibits the inclusion of personal, commercially sensitive, or site-specific information in uploaded documents.

If you need assistance understanding how the franchise disclosure register impacts your business, our experienced franchise lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions