Do not delete : Schedule Part placeholder

(regulation 3)

[1] Schedule, subclause 3 (1), definition of associate, subparagraph (a) (ii)

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15 per cent

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15%

[2] Schedule, subclause 3 (1), definition of associate, paragraph (b)

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relationship to

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relationship with

[3] Schedule, subclause 3 (1), after definition of franchise

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franchise agreement has the meaning given by clause 4.

[4] Schedule, subclause 3 (1), definition of franchisor, paragraph (c)

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subfranchisee.

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subfranchisee;

[5] Schedule, subclause 3 (1), definition of franchisor, after paragraph (c)

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(d) a master franchisee in a master franchise system;

(e) a master franchisee in its relationship with a franchisee.

[6] Schedule, subclause 3 (1), definition of master franchise

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the franchisor grants to a subfranchisor

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the franchisor grants to a subfranchisor or master franchisee

[7] Schedule, subclause 3 (1), after definition of master franchise

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motor vehicle means a vehicle that uses, or is designed to use, volatile spirit, gas, oil, electricity or any other power (except human or animal power) as the principal means of propulsion, but does not include a vehicle used, or designed to be used, on a railway or tramway.

Examples of motor vehicles

1 motor car

2 motor cycle

3 motorcycle

4 tractor

5 motorised farm machinery

6 motorised construction machinery

7 aircraft

8 motor boat

motor vehicle dealership means a business of buying, selling, exchanging or leasing motor vehicles that is conducted by a person other than a person who is only involved as a credit provider, or provider of other financial services, in the purchase, sale, exchange or lease.

[8] Schedule, subclause 3 (2)

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Corporations Law

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Corporations Law

[9] Schedule, clause 4, heading

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4 Meaning of franchise agreement

[10] Schedule, subclause 4 (3)

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do not in themselves

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does not in itself

[11] Schedule, subparagraph 4 (3) (f) (ii)

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Co-operatives Act 1996

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Co-operatives Act 1996

[12] Schedule, subparagraph 4 (3) (f) (viii)

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Northern Territory.

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Northern Territory;

[13] Schedule, after subparagraph 4 (3) (f) (viii)

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(ix) the Corporations Law.

[14] Schedule, paragraph 5 (2) (a)

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applies

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apply

[15] Schedule, subclause 6 (1)

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under

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in accordance with

[16] Schedule, subclause 6 (1), at the foot

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Note Under the definition of franchisor, a franchisor includes a master franchisee, or a subfranchisor, in its relationship with a subfranchisee: see subcl 3 (1).

[17] Schedule, subclause 6 (2)

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under

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in accordance with

[18] Schedule, subclauses 6 (4) and (5)

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(4) If a franchisor proposes to grant a master franchise, the franchisor must give a disclosure document in accordance with Annexure 1 to the prospective subfranchisor or master franchisee.

Note Subclause (4) does not apply to a franchise agreement to which para 5 (3) (a) applies.

(5) If a subfranchisor or master franchisee proposes to grant a subfranchise to a franchisee:

(a) the franchisor and subfranchisor, or the master franchisee:

(i) must individually give a disclosure document to the franchisee or prospective franchisee; or

(ii) must give to the franchisee or prospective franchisee a joint disclosure document that addresses the respective obligations of the franchisor and the subfranchisor; and

(b) the subfranchisor, or the master franchisee, must comply with the requirements imposed on a franchisor by this Part.

[19] Schedule, clause 8

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under

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in accordance with

[20] Schedule, subclause 9 (1)

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under Annexure 1

[21] Schedule, paragraph 11 (3) (a)

after

agreement

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with a franchisor

[22] Schedule, paragraph 11 (3) (b)

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a franchisor

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the franchisor

[23] Schedule, subclause 12 (1)

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under

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in accordance with

[24] Schedule, after subclause 17 (2)

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(3) A franchisor is taken to have complied with paragraph 12.1 (h) of Annexure 1 if, to the extent to which the franchisor is aware of the details, the franchisor supplies the following information for the period before 1 July 1998 to the franchisee:

(a) the amounts of expenditure on production, advertising, administration and any other category of expenditure stated in the disclosure document for each marketing or other cooperative fund controlled or administered by or for the franchisor to which the franchisee may be required to contribute;

(b) the percentage that each amount disclosed in accordance with paragraph (a) constitutes of the total expenditure disclosed in accordance with that paragraph.

[25] Schedule, paragraph 18 (2) (e)

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franchisor

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in Australia

[26] Schedule, Annexure 1, paragraph 1.1 (d)

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and

[27] Schedule, Annexure 1, item 3.1

after

a summary of the

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relevant

[28] Schedule, Annexure 1, item 6.1

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State or Territory

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State, Territory or region

[29] Schedule, Annexure 1, paragraph 9.1 (i)

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to what extent.

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to what extent; and

[30] Schedule, Annexure 1, after paragraph 9.1 (i)

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(j) whether the franchisor, or an associate of the franchisor, will receive a rebate or other financial benefit from the supply of goods or services to franchisees, and whether any rebate or financial benefit is shared, directly or indirectly, with franchisees.

[31] Schedule, Annexure 1, item 10.2

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[32] Schedule, Annexure 1, item 11, heading

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11. Sites or Territories

[33] Schedule, Annexure 1, item 11.1

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11.1 The policy of the franchisor, or an associate of the franchisor, for selection of as many of the following as are relevant:

(a) the site to be occupied by the franchised business;

(b) the territory in which the franchised business is to operate.

[34] Schedule, Annexure 1, item 12.2

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Note Subclause 17 (3) of the Code deals with compliance by the franchisor with para 12.1 (h).

[35] Schedule, Annexure 1, item 20.2

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20.2 Financial reports (including profit and loss statements and balance sheets) for the last 2 years that have been prepared by the franchisor in accordance with the relevant accounting standards under section 296 of the Corporations Law.

Notes

1. These Regulations amend Statutory Rules 1998 No. 162.

2. Made by the Governor-General on 25 August 1999, and notified in the Commonwealth of Australia Gazette on 1 September 1999.