Compulsory franchise conditions
These conditions are compulsory, even if they are not written in the agreement:
- if the premises are leased from the franchisor, a copy of the lease must be provided to the franchisee;
- if the franchisee has to contribute to a marketing co-operative fund, the franchisor must supply a financial statement of the funds activities;
- the franchisor cannot stop the franchisee from joining or forming a franchisee association;
- the franchisee can end the agreement within seven days of signing;
- the franchisor must provide a current Disclosure Document within 14 days of being requested - this is limited to one a year;
- the franchisor cannot unreasonably consent to transfer the franchised business, except in certain circumstances;
- in most cases the franchisor must give reasonable notice of an intention to end the franchise agreement, and allow the franchisee a reasonable time to fix any alleged breach.