Changes to the Franchising Code of Conduct (Code) which took effect on 1 January 2015 altered the obligations for Franchisor’s who operate marketing funds. Following the changes, Franchisors must, in addition to including details of the fund in the Franchise Agreement:
- include the details of the marketing fund in the disclosure document;
- prepare and maintain financial statements concerning the marketing fund;
- keep all funds received towards the marketing fund in a separate account;
- make their own contributions towards the marketing fund; and
- use the marketing fund exclusively for marketing.
