Annual Disclosure Update Obligations
Under the Code, franchisors must:
- Conduct at least one annual review and update of their disclosure document; and
- Make ongoing updates throughout the year where necessary to ensure franchisees remain informed.
The timing of your annual update depends on when your franchise agreement was entered into, extended, renewed or transferred.
| Franchise agreements before 1 April 2025 | Franchise agreements after 1 April 2025 |
| Update must be completed within 4 months after the end of your financial year. If your financial year ends 30 June, the update is due by 31 October. | Update must be completed within 4 months of the first day of your financial year. If your financial year starts 1 July, the update is due by 31 October. |
There are only limited exceptions to these requirements, including if your business operates to a different financial year. Our franchising team can assist you to determine how the rules apply to your particular financial year and business structure.
Additional Obligations from 1 November 2025
From 1 November 2025, franchisors must also comply with new disclosure requirements, including:
- Disclosure of any significant capital expenditure expected of franchisees; and
- Provision of additional information and documents where franchisees contribute to a specific purpose fund.
These changes are part of a transition period under the updated Code.
Why Accurate Disclosure Matters
The disclosure document is a critical tool for transparency between franchisors and franchisees. If a franchisor misleads or fails to provide important information to prospective or existing franchisees, this may amount to a breach of the Code and the Australian Consumer Law.
Breaches can attract serious consequences, including:
- Court-imposed penalties;
- ACCC infringement notices carrying financial penalties; or
- Investigations and enforcement action under the ACCC’s compliance and enforcement policy
Practical Steps for Franchisors
- Review your current disclosure document to ensure all information is current and compliant.
- Identify when your disclosure document is due to be updated based on the date of your franchise agreement and your financial year.
- Consider new obligations taking effect from 1 November 2025 and begin preparing the necessary data and documentation.
- Seek legal advice to confirm your obligations and address any compliance risks.
Need Assistance?
Our franchising and commercial law team can help you:
- Determine your disclosure deadlines;
- Prepare compliant disclosure documents under the new Code; and
- Review your franchise agreements to ensure alignment with the updated requirements
For tailored advice, please contact Long Saad Woodbridge Lawyers today on (02) 9279 4888.
Disclaimer
The information in this article is general in nature and is not intended as legal advice. You should not do or fail to do anything in reliance on information in it. We do not accept any responsibility for any loss that you suffer if you do. You should seek professional advice before you do anything about the issues set out in this article.
