Information Statement for Prospective Franchisees

As part of the tightening regulatory framework within the franchising industry in Australia, where a prospective franchisee expresses an interest or formally applies to buy a franchise, franchisors must give them an Information Statement.

As from 15 April 2022, the Information Statement must be provided as soon as practicable but not later than 7 days after a prospective franchisee expresses an interest.

The Information Statement is a prescribed document under the Franchising Code of Conduct that highlights various aspects related to franchising, such as:

• details about what is franchising;

• cooling off rights;

• risks and benefits in regards to entering into a franchise arrangement;

• types of franchise costs to be aware of;

• outline of issues to consider before committing to a franchise;

• where to get further information about franchising;

• links to free franchise education;

• etc

Before entering into a franchise it is important to obtain legal advice from lawyers experienced in franchise law. Greyson Legal | Franchise Lawyers are exerts in franchise law.

E: mail@greysonlegal.com