By 31 October 2009 franchisors must update their disclosure
document to ensure that they reflect information current at a date
which is between 1 July 2009 and 31 October 2009.
Most systems will need to consider issues, including the
whether the franchisor's (and its related entity's)
details are the same
whether the officers of the franchisor changed, and if so, what
is the business experience of the new officers
whether the franchisor, or directors of the franchisor, have
been involved in any litigation, and if so, the details of that
whether changes have occurred to the number of existing
franchised businesses, existing franchisees and company operated
general information regarding current franchisees (such as
their address, phone number) will need to be updated and
information regarding franchisees that have exited the system in
the last year added
the franchisor will need to identify and give details of
transfers, businesses that ceased to operate, franchise agreements
that were terminated (by the franchisee and the franchisor),
franchise agreements that were not renewed upon expiry, franchised
businesses that were bought back by the franchisor and, franchise
agreements that were terminated and the franchised business was
acquired by the franchisor
whether the franchisor now receives rebates from any new
suppliers, and if so, whether those rebates are not shared, shared
indirectly or shared directly with franchisees
whether the price or price range given in the payments section
are still relevant and appropriate
whether the franchisor is solvent.
Please contact Middletons with any queries regarding the update
of your disclosure document.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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