If you are thinking about buying a franchise, remember that Australia has a national mandatory Franchising Code of Conduct which sets out the information you should receive before you sign any agreement or hand over any non-refundable money.
The franchisor must give you a copy of the Code, a copy of your franchise agreement in its final form, and a current disclosure document which includes: contact details of current franchisees and some former franchisees; details of certain court cases against the franchisor or its directors; whether you will have an exclusive territory – that is, whether other franchisees (or the franchisor) will be allowed to sell in your area; who you can source goods or services from; an indication of the franchisor’s financial health. Read on.
