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If you’ve set up a franchise, you know there are a number of requirements you must comply with. Laws around franchising are continually evolving, so it’s crucial to stay on top of your obligations – especially as we move into 2025
One of your main obligations is your Disclosure Document – provided to a person looking to enter into a franchise agreement, it discloses all the relevant details of your franchise system.
It’s essentially your commitment to being 100% transparent with potential franchisees before they make any decisions.
What Is In A Franchise Disclosure Document?
A Franchise Disclosure Document generally outlines key aspects of the franchise system, such as:
- Costs involved in operating the franchise
- Details of current and former franchisees
- Any legal proceedings or disputes involving the franchise
This document simplifies the decision-making process for potential franchisees by providing all necessary information upfront.
However, as a franchisor, you must update your Disclosure Document every financial year – currently by 31 October – to ensure it reflects any regulatory changes and current market conditions in 2025. Engaging a lawyer to review your document ensures that it accurately incorporates all relevant updates and details for prospective buyers.
What Are My Other Obligations?
Both the franchisor and the franchisee have a number of obligations to keep the business thriving. Some key responsibilities include:
- Acting in good faith throughout the business relationship
- Complying with your Franchise Agreement
- Meeting all financial obligations
- Following the appropriate dispute resolution process as outlined in your agreements
Ensuring that all documents, including your Disclosure Document, are current is essential. For further guidance on maintaining compliance, check out our Legal Requirements for Starting a Business guide and explore our insights on Company Set-Up should you be considering a change in structure.
The franchisor provides clear guidance on how the business should be run, and franchisees are expected to follow this model. A franchise works best when everyone collaborates towards common goals, set out at the beginning of the business relationship.
Additional obligations are detailed in the Franchising Code of Conduct, ensuring fair and transparent dealings between all parties.
Who Can Update My Disclosure Document?
It’s best practice to consult a lawyer before making any changes to your franchise documents. At Sprintlaw, our experienced lawyers work closely with you to tailor our services to your business’s specific needs.
Our Franchise Disclosure Document Update package includes:
- Comprehensive updates to your Franchise Disclosure Document
- Phone consultations with a Sprintlaw lawyer who will advise you on the latest legal issues affecting your documents
- A complimentary amendment to the final draft, ensuring every detail is current for 2025
Need Help?
Updating your Disclosure Document can be quick and stress-free with the right legal support. Our team ensures you don’t miss any key steps or details, helping you remain compliant with all updated regulations in 2025.
As the franchising landscape becomes increasingly sophisticated, it’s crucial to keep pace with legislative changes and market trends. Our experts regularly update their knowledge to guide you through these shifts. For instance, if you’re also reviewing other contractual matters, consider our Contract Review Service to ensure your agreements remain robust and current.
If you would like a consultation on your options moving forward, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat. You may also explore our specialised legal services and learn more about our comprehensive support from the Contract Review page, ensuring every aspect of your franchising documentation is in order.
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