On this page

Key documents for all potential franchisees

A franchisor must give a potential franchisee:

  • an information statement - an official document explaining franchising. Franchisors must give this to potential franchisees at the earliest opportunity. This must be done before giving them any other document
  • a copy of the franchise agreement – it says what the franchisee and the franchisor have agreed to do and not do
  • a disclosure document – tells the franchisee important information about the franchisor and franchised business
  • a key facts sheet – this helps the franchisee understand the disclosure document
  • a copy of the Franchising Code of Conduct – one of the laws that franchisees and franchisors must follow.

These documents must be given to the potential franchisee at least 14 days before they sign the franchise agreement or make a non-refundable payment.

If an existing agreement is being transferred from an existing franchisee to a new franchisee, it must be given at least 14 days before the franchisor approves the transfer.

Key documents for some potential franchisees

Depending on the circumstances, the franchisor must give a potential franchisee:

  • leasing information, if the franchisee is leasing or occupying premises from the franchisor or its associate
  • a copy of the existing franchise agreement and other relevant documents, if an existing agreement is being transferred to a new franchisee
  • earnings information that is accompanied by a statement that, to the best of the franchisor’s knowledge, is accurate except for information it specifies is not accurate. Earnings information includes historical earnings data for the franchise system or a franchised business, and projected earnings for a franchised business. If franchisors are not giving earnings information, they must tell franchisees this at Item 20 of the disclosure document.
  • copies of any other agreements that a franchisee has to enter into as a condition of the franchise agreement, such as a confidentiality agreement or a security agreement.

Is this page useful?