24Transferring franchise agreements

24 Transferring franchise agreements

Application (1) This section applies to a franchisor if: (a) a request is made under section 48 that the franchisor consent to the transfer of an existing franchise agreement to a prospective franchisee; and (b) the transfer does not involve entry into a new franchise agreement.

Note: For paragraph (b), see section 23 for transfers that involve entry into a new franchise agreements.

Documents that franchisor must give prospective franchisee (2) The franchisor must give the prospective franchisee: (a) a copy of the existing franchise agreement; and (b) each other document (if any) the franchisor requires the prospective franchisee to sign to give effect to the transfer; and (c) if applicable, a copy of the documents mentioned in paragraph 23(2)(b); and (d) if the prospective franchisee has not given the franchisor a written notice under subsection (4) of this section—the documents mentioned in subsection 23(5). Consent not to be given until after 14 day period (3) The franchisor must not give the consent before the end of 14 days after the later of the following: (a) the day the franchisor gives the prospective franchisee the documents required by subsection (2); (b) if, after the day mentioned in paragraph (a) and before the transfer occurs, the franchisor gives the prospective franchisee earnings information in relation to the franchise—the day the franchisor gives the prospective franchisee that information.

Civil penalty: 600 penalty units.

Documents that prospective franchisee may opt out of receiving (4) The prospective franchisee may, by written notice given to the franchisor, opt out of being given the documents mentioned in subsection 23(5) if: (a) the prospective franchisee has another franchise agreement with the franchisor that is the same or substantially the same as the existing franchise agreement; and (b) the business that is the subject of the existing franchise agreement is the same or substantially the same as the business that is the subject of the other franchise agreement.