When to update your Disclosure Document

The new Franchising Code of Conduct, which came into operation on 1 January 2015, requires all Franchisors to update their Disclosure Document to the new format by 31 October 2015.
More generally, the Franchising Code of Conduct requires you to update your Disclosure Document every financial year and have it ready within 4 months of the end of that financial year. This means that for every year, you will need to make sure that your Disclosure Document is updated by 31 October 20XX.
What if I already have updated it to match the new Code?
According to our Franchise Lawyers, if you have already updated it, then you won’t need to worry about updating your Disclosure Document until 4 months after the end of the next financial year. I.e. 31 October 2016.
You won’t, however, need to update your Disclosure Document if:
- You didn’t enter into any new franchise agreements for that financial year;
- You only entered into 1 new franchise agreement for that financial year; or
- You don’t intend to enter into a new franchise agreement for the next financial year.
Despite the above, however, our Franchise Lawyers always recommend as a practical matter that you update your Disclosure Document every year. This is because the Franchising Code of Conduct also obliges you to provide a Disclosure Document to an existing franchisee if they ask for one and the copy that you provide needs to be an updated copy. The only restriction to this is that a Franchisee cannot ask for a copy more than once every 12 months. It’s always more difficult, time consuming and expensive to update a really old Disclosure Document than it is to update a Disclosure Document that is 1 year old.
Redundancies and Restructuring: Understanding Your Employer Obligations
Thursday 7 July | 11:00 - 11:45am
Online
How to Sponsor Foreign Workers For Your Tech Business
Wednesday 13 July | 11:00 - 11:45am
Online
Advertising 101: Social Media, Influencers and the Law
Thursday 21 July | 11:00 - 11:45am
Online
Structuring for Certainty in Uncertain Times
Tuesday 26 July | 12:00 - 12:45pm
Online
Playing for the Prize: How to Run Trade Promotions
Thursday 28 July | 11:00 - 11:45am
Online
Web3 Essentials: Understanding SAFT Agreements
Tuesday 2 August | 11:00 - 11:45am
Online
Understanding Your Annual Franchise Update Obligations
Wednesday 3 August | 11:00 - 11:45am
Online
Legal Essentials for Product Manufacturers
Thursday 11 August | 11:00 - 11:45am
Online
Was this article helpful?
We appreciate your feedback – your submission has been successfully received.
About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.
By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.
If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.