27Statements with respect to independent advice

27 Statements with respect to independent advice

(1) A franchisor must not enter into a franchise agreement unless the franchisor has received from the prospective franchisee, in respect of advice from each kind of adviser mentioned in subsection (2): (a) a signed statement by that kind of adviser to the effect that the adviser has given the prospective franchisee advice about the proposed franchise agreement or franchised business; or (b) a signed statement by the prospective franchisee to the effect that the prospective franchisee: (i) has been given advice by that kind of adviser about the proposed franchise agreement or franchised business; or (ii) is aware of the need to obtain advice from that kind of adviser but has decided not to obtain it.

Civil penalty: 600 penalty units.

(2) For the purposes of subsection (1), the kinds of advisers are the following: (a) an independent legal adviser; (b) an independent business adviser; (c) an independent accountant. Exception to subsection (1) (3) Subsection (1) does not apply to: (a) the renewal of a franchise agreement; or (b) the extension of the term or scope of a franchise agreement. Franchisor may require prospective franchisee to provide statements (4) Subsection (1) does not prevent the franchisor from requiring the prospective franchisee to give the franchisor a statement mentioned in paragraph (1)(a) before the franchisor enters into a franchise agreement with the prospective franchisee.