The new Franchising Code of Conduct requires franchisors to keep originals or copies of all written things a franchisee or a prospective franchisee is required to give (or may give) under the Code.
This will apply to things such as:
1. a notice requesting a copy of the disclosure document from a current franchisee;
2. a vote for non-audit of a marketing fund;
3. a request by a previous franchisee not to disclose contact details; and
4. request to consent to transfer of franchise.
The franchisor must keep the "written thing" for at least 6 years after it is created.
It is very important for franchisors to review their record keeping procedures to ensure compliance with this new provision.
