Question: What needs to be updated in a Disclosure Document?
Answer:Every item in the Disclosure Document must be reviewed and, if required, it must also be updated. Usually, some of the items, such as item 10 (supply of goods or services to a Franchisee) or item 18 (arrangements to apply at the end of the franchise agreement), don’t need to be updated as they will not have changed. However, item 6 (existing Franchisees) and item 21 (financial details) will almost always have some changes to them and accordingly will need to be updated by the Franchisor. However, if any changes have resulted in a material change or the events set out in clause 17(3) of the Franchising Code have occurred, then the Disclosure Document has to be updated irrespective of whether it is “time” to update or not.
