9DAmendment of franchise agreement on transfer or novation of franchise

9D Amendment of franchise agreement on transfer or novation of franchise

9D.1 Whether the franchisor will amend (or require the amendment of) the franchise agreement on or before transfer or novation of the franchise.

10 Financial details

10.1 A statement as at the end of the last financial year, signed by at least 1 director of the franchisor, whether in its directors’ opinion there are reasonable grounds to believe that the franchisor will be able to pay its debts as and when they fall due.

10.2 Financial reports for each of the last 2 completed financial years in accordance with sections 295 to 297 of the Corporations Act 2001, or a foreign equivalent of that Act applicable to the franchisor, prepared by the franchisor.

10.3 If:

(a) the franchisor is part of a consolidated entity that is required to provide audited financial reports under the Corporations Act 2001, or a foreign equivalent of that Act applicable to the consolidated entity; and

(b) a franchisee requests those financial reports;

financial reports for each of the last 2 completed financial years, prepared by the consolidated entity.

10.4 Items 10.2 and 10.3 do not apply if:

(a) the statement under item 10.1 is supported by an independent audit provided by:

(i) a registered company auditor; or

(ii) if the franchisor is a foreign franchisor — a foreign equivalent for that franchisor;

within 12 months after the end of the financial year to which the statement relates; and

(b) a copy of the independent audit is provided with the statement under item 10.1.

11 Other relevant disclosure information

11.1 A copy of the franchise agreement, in the form in which it is to be executed, must be attached.

11.2 A copy of the code must be attached.

11.3 Any other information that:

(a) the franchisor wants to give; and

(b) does not contradict information required to be given.

12 Receipt

12.1 On the last page of the disclosure document:

(a) a statement to the effect that the prospective franchisee may:

(i) keep the disclosure document; and

(ii) ask the franchisor for the information referred to in the following sections of Annexure 1:

• section 3 — Business experience
• section 5 — Payments to agents
• section 6 — Existing franchises
• section 9 — Supply of goods or services to a franchisee
• section 10 — Supply of goods or services by a franchisee