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Disclosure documents |
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The following is a summary of the data registered franchisors are required to include in their annually updated standard U.F.O.C. (Uniform Franchise Offering Circular). The franchisor: About the people who run the franchise - Job descriptions and qualifications of all directors, the company secretary and executive officer.
- The length of experience in:
- They type of business offered in the franchise; - Operating or offering the franchise; - Operating other franchises; and a description of those franchises. - A detailed resume of their overall business experience.
- About the franchisor's finances:
- A financial statement prepared in accordance with normal accounting standards.
The statement covers the most recent two years of trading and includes: - Current assets - Non-current tangible assets - Non-current intangible assets - Total assets - Current liabilities - Non-current liabilities - Shareholder's equity - Operating profit (loss) after tax. If dealing with a franchisor that is acting in a trust capacity: - Any liabilities incurred as a trustee
- The amount by which the franchisor has the right to be indemnified out of trust assets.
About the franchisor's history: - Details concerning the franchisor (and any related entities) or any of its directors / executive officers / principals regarding:
- Any materially relevant debt
- Criminal, civil or administrative proceedings
- Bankruptcies /insolvency's (past or pending)
About the franchising chain: - The number of existing franchised outlets and company owned outlets associated with the franchisor or its principals.
- A list of existing franchisees (including their addresses and phone numbers and the year they commenced business). Should a full list be impractical, then a list of all franchisees in the applicable region or metropolitan area should be provided.
- The number of franchises terminated or not renewed, over the past year.
- Details of any current unresolved litigation including those with any existing or former franchises.
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