What the Government rejected, according to Mason Sier Turnbull
1. The introduction of a mandatory process of franchisor registration and annual lodgement of disclosure documentation and other prescribed information. The Government considered that the associated costs of this would have been at odds with its policy of reducing the regulartory burden on business where possible. There were also concerns that the registration of such information could be perceived as an endorsement of the franchise system.
2. Requiring franchisors to compile a risk statement and include it in their disclosure document. Risk assessment was judged to be something that prospective franchisees should conduct themselves and take responsibility for. Such a recommendation would have imposed an unreasonable burden on franchisors as a risk assessment could, in practice, have been very difficult for them to complete accurately.
3. Requiring franchisors to provide audited financial information about themselves and any relevant consolidated entity Reason: too burdensome.
4. Removing or modifying a franchisor's right to include in a franchise agreement a right of unilateral termination, or alternatively, to compensate a terminated franchise. Reason: covered adequately by existing law or can be addressed by specific educational activities.
5. Obligating franchisors, franchisees and prospective franchisees to deal with each other fairly and in good faith. Reason: Mason Sier Turnbull , franchising lawyers. 31.08.2007
FCA Member
Contact Mason Sier Turnbull
315 Ferntree Gully Road
Mount Waverley
VIC 3149
Tel: +613 8540 0287
Fax: +613 8540 0202
