Chapter 2: Disclosure Document

The Franchising Code is constructed around a number of tenets. These include:

Disclosure occupies much of the content of the Franchising Code of Conduct 2014 (the Code). It supports the fundamental principle that a franchisee or prospective franchisee is entitled to appropriate information from the franchisor to permit it to make informed decisions. At the same time it does not excuse the recipient from appropriate due diligence enquiries. This is counterbalanced by the appropriateness of not unduly burdening franchisors with onerous disclosure requirements, sentiments expressed in several parliamentary reports including the report of the Parliamentary Joint Committee on Corporations and Financial Services December 2008 entitled “Opportunity Not Opportunism: Improving Conduct in Australian Franchising”.