One bugbear under the current Franchising Code of Conduct relates to the requirement to redisclose to a franchisee if amendments are made to the franchise agreement after the initial disclosure takes place.
Let me paint the picture for you, the franchise agreement is prepared together with all other associated documents, disclosure is made to the franchisee, the franchisee negotiates changes to the franchise agreement and thus we have to undertake the disclosure process again and the 14 days between disclosure and the franchisee being able to sign the franchise agreement starts all over again from the date redisclosure takes place.
The new Code will alleviate some of that pain and mean that unnecessary delays are not encountered with the requirement for redisclosure waived if changes are made to the franchise agreement:
1. to give effect to a franchisee's request;
2. to fill in particulars;
3. to reflect a change of address or other detail;
4. for clarification of a minor nature; or
5. to correct errors or references.
This will help to streamline the process for franchisees and franchisors alike.
