Prospective franchisees now have a new tool to help them in their buying decisions.

A government-hosted website, the Register, provides a list of franchise companies active in Australia.

Anyone researching a brand, or a particular industry, can use the Register to discover detailed information about the franchises.

This is a mandatory listing for franchised brands across the country, and some information must be provided.

What will be on the site

• how long a franchise has operated in Australia
• how many businesses are operating: the number of franchise outlets, and franchisees – and the number of corporate business units
• each state or territory which has a franchisee
• whether franchisees are restricted on where they can source goods or services 
• if the franchisor requires payment prior to a franchise agreement, why the money is needed and how it will be spent; who holds the money, and conditions for a refund
• costs payable by a franchisee to start the franchise
• ongoing payments a franchisee has to make to the franchisor
• other payments payable by a franchisee
• whether the franchise agreement may be varied, unilaterally, by the franchisor
• the term of the franchise agreement                
• if a franchisee has an option to renew the franchise agreement
• if a franchisee has any rights relating to goodwill they have generated
• whether the franchise agreement includes a restraint of trade clause

Franchisors don’t have to upload a disclosure document

However, franchisors may or may not include their disclosure document which provides more detail about the business. They may choose to add in, or leave out, the key facts sheet as well.

The website highlights that the information is provided by franchisors and there is no endorsement or verification of the information provided by the government.

A number of filters allow the user to search more specifically for businesses which have uploaded the extra documents, or which operate in particular states.

Another way to search for information that helps evaluate business opportunities and understand the pros and cons of franchising is to check in to the Inside Franchise Business podcast series, or download the Franchise Handbook.