47Discussion about significant capital expenditure disclosed in disclosure document

47 Discussion about significant capital expenditure disclosed in disclosure document

The franchisor must not enter into, renew or extend the term or scope of a franchise agreement unless the franchisor and the franchisee or prospective franchisee have discussed: (a) any significant capital expenditure disclosed in the disclosure document as mentioned in subsection 20(4); and (b) the circumstances under which the franchisor considers that the franchisee or prospective franchisee is likely to recoup the expenditure, having regard to the geographical area of operations of the franchisee or prospective franchisee.

Civil penalty: 600 penalty units.