22Information statement to be given by franchisors

22 Information statement to be given by franchisors

(1) If a prospective franchisee formally applies or expresses an interest in acquiring a franchised business, the franchisor must give the prospective franchisee a copy of the information statement relating to franchising that is published on the Commission’s website: (a) as soon as practicable, and not later than 7 days, after the prospective franchisee formally applies or expresses an interest in acquiring the franchised business; and (b) before the franchisor gives the prospective franchisee any of the documents mentioned in subsection 23(2).

Civil penalty: 600 penalty units.

(2) To avoid doubt, this section does not apply to: (a) the renewal of a franchise agreement; or (b) the extension of the term or scope of a franchise agreement.

Note: For when information in writing may be given electronically, see section 9 of the Electronic Transactions Act 1999.