The Information Statement is a standard document set out in annexure 2 to the Code. It is a generic statement designed to inform prospective franchisees of a number of key matters before they make the commitment to enter into a franchise agreement. It includes an explanation of what franchising is and what the franchising relationship involves, the risks of franchising, information on where to obtain more information and online education courses on franchising.
When should it be provided?
The timing for providing an Information Statement is within 7 days of the enquiry being made
How should the information statement be provided?
We suggest you provide it to prospective franchisees in one of two ways:
- by email (in which case we ask that you retain a copy of the email and the attached information statement as a record for your file); or
- by personally handing it to the prospective franchisee (in which case we ask that you take two copies along with you to the meeting and ask that the prospective franchisee sign, print their name and date your copy (which you will retain) as a record for your file).
When submitting an instruction sheet with the documents team to raise franchise documents you will be asked to supply receipt of the information statement being a copy of the above.
Can the information statement be amended?
We do not recommend adding any logos or customization as it deflects from the information statement being a standard issue ACCC document.
Some Franchisors will add a simple execution section to the end so they have receipt of it being provided (as mentioned above).
What happens if you don't provide the information statement?
You will be in breach of the Franchising Code of Conduct and penalties could be issued by the ACCC.
Your submission for documents will also be rejected by the documents team until the information statement is provided and receipt can be provided.