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Disclosure Document

A Disclosure Document is provided by the franchisor detailing the financial turnover expected of a particular franchise, to the franchisee, generally before a franchise agreement is signed and thereafter to be provided three months after the end of each financial year, after the franchise agreement has been signed.

 

The purpose of the “disclosure document” is to provide accurate information for a prospective franchisee or existing franchisee wishing to extend their franchise contract, so that the franchisee can make an informed decision about the franchise opportunity.

 

The “disclosure document” must be signed by the director of the company or by the executive officer representing the franchisor. 

 

 

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