17Marketing and other cooperative funds

17 Marketing and other cooperative funds

(1) If a franchise agreement provides that a franchisee must pay money to a marketing or other cooperative fund, the franchisor must:

(a) within 4 months after the end of the last financial year, prepare an annual financial statement detailing all of the fund’s receipts and expenses for the last financial year; and

(b) have the statement audited by a registered company auditor within 4 months after the end of the financial year to which it relates; and

(c) give to the franchisee:

(i) a copy of the statement, within 30 days of preparing the statement; and

(ii) a copy of the auditor’s report, if such a report is required, within 30 days of preparing the report.

(2) A franchisor does not have to comply with paragraph (1) (b) for a financial year if:

(a) 75% of the franchisor’s franchisees in Australia, who contribute to the fund, have voted to agree that the franchisor does not have to comply with the paragraph; and

(b) that agreement is made within 3 months after the end of the financial year.

(3) The agreement referred to in paragraph (2) (a) will remain in force for 3 years, and franchisees must vote, at the end of that time, in accordance with paragraph (2) (a), for the agreement to remain in force.

(4) If a franchise agreement provides that a franchisee must pay money to a marketing or other cooperative fund, the reasonable costs of administering and auditing the fund must be paid from the fund.