Frequently Asked Questions About Franchising

Provide a long form franchise disclosure document to your franchisees and potential franchisees with this free Annexure 1, in accordance with the Australia Franchising Code of Conduct.

• All franchisors operating in Australia, whether domestic or foreign, must comply with the requirements of the Code.
• The long form disclosure applies to businesses with an actual or expected annual turnover of $50,000 or more at any time during the term of the franchise.
• The disclosure form provides franchisees or potential franchisees with detailed information about the corporation, the business, the franchise agreement, financial history, etc to help them make an informed decision with respect to buying a franchise or renewing an existing agreement.
• The disclosure document must be provided to the franchisee at least 14 days before they sign a franchise agreement, along with a copy of the agreement and the Code.

This Australia Long Form Franchise Disclosure Document is Annexure 1 to the Franchising Code of Conduct. Updated to reflect 2010 amendments.

Franchisors in Australia must provide potential franchisees with a copy of this Information Statement as of 1 July 2021.

• The Franchising Code of Conduct requires that prospective franchisees be provided with the Information Statement before any other disclosure related documents listed in clause 9 of the Code.
• The Information Statement explains how franchising works, what a franchisor's obligations are, and what interested parties should do to protect their own interests before they sign any documents.
• Click the Download link to download a PDF of the Information Statement directly from the ACCC website.

Are you planning to franchise your business? Get this free Checklist to find out if your business model meets the minimum requirements to be a franchisor, including:

• the history of the business and experience of its principals,
• profitability of your business model,
• level of documentation, training and support you're able to provide franchisees.

The free Checklist of Franchisor Requirements was compiled by a franchise specialist. Download your copy today!

Canadian franchise laws require franchisors to provide potential franchisees with this Franchise Disclosure Document.

• The Disclosure Document discloses all relevant information about the franchisor and the franchise business as required by franchise laws and regulations for the Provinces of Ontario, Alberta, British Columbia, Manitoba, New Brunswick, and Prince Edward Island, including:
  • the franchisor's corporate structure and history,
  • the business experience of the principals of the franchisor,
  • any current or potential litigation involving the franchisor,
  • initial franchise fees and other fees to be paid by a franchisee,
  • financing, working capital, and estimates of annual operating costs,
  • restrictions on sources of products and services, and restrictions on what the franchisee may sell,
  • assistance and training programs offered by the franchisor,
  • government licenses, registrations and authorizations,
  • provisions for renewal, transfer and termination of the franchise,
  • financial statements and information,
  • forms and addenda to meet province-specific requirements.
• The form is available in MS Word format.
• Intended for use only in Canada.

Franchisors, use this 4-page Franchisee Profile Questionnaire to gather information from applicants to help you recruit suitable franchisees for your system.

• Applicants must provide information and answer questions to help the franchisor get an understanding of the applicant's:
  • previous business experience,
  • business acumen,
  • management potential,
  • creativity,
  • decision-making abilities.
• The form is available in MS Word format and is easy to customize to fit your circumstances.
• This is a generic document template which can be used anywhere.