If you have come across references to an "FDD" while researching, you are looking at American resources. Australia uses its own document under local law, and these differences are important.
In Australia, franchisors must prepare a Disclosure Document and give it to potential franchisees under the Franchising Code of Conduct. This document provides key information to help franchisees make informed decisions.
This is a legal requirement, not a marketing tool. The Code sets out what must be included, and mistakes can now lead to civil penalties. Most obligations under the new Code can result in penalties of up to 600 penalty units.
The Franchise Disclosure Document (FDD) is used in the United States and is regulated by the US Federal Trade Commission's Franchise Rule. In Australia, the equivalent is called a Disclosure Document and is governed by the Franchising Code of Conduct. The contents, timing, and regulator are all different.
This is important because most search results are American. If you use a US template, you will not meet Australian legal requirements.
A franchisor must give the Disclosure Document to a potential franchisee before signing the Franchise Agreement, following the timeline set by the Code. There is also a separate rule to provide an Information Statement within 7 days after someone applies or shows interest in a franchise.
The disclosure period gives potential franchisees real time to review documents and get advice. Shortening this period or pressuring someone to sign early is exactly what the Code aims to stop.
Two main changes are important. The Key Facts Sheet is no longer required. Starting 1 November 2025, the Disclosure Document must also include more details about significant capital expenditure and Specific-Purpose Funds.
The Key Facts Sheet is no longer needed. Franchisors do not have to prepare, update, or upload it to the Franchise Disclosure Register. Older guidance from before 2025 may still say otherwise.
For significant capital expenditure, the Disclosure Document must explain the reasons, amount, timing, type, outcomes, benefits, and risks of any major spending required from the franchisee. The franchisor must also talk about this with the potential franchisee, as disclosure alone is not enough.
If franchisees must pay into a Specific-Purpose Fund (marketing, cooperative, IT or conference), the Disclosure Document must provide certain details, and the franchisor must prepare a financial statement of all income and expenses paid out of the fund for the past financial year.
You must update the Disclosure Document at least once a year, and also whenever there are major changes. The yearly deadline is within four months of a key date in your financial year, depending on whether agreements were signed before or after 1 April 2025.
Franchisors must keep disclosure and supporting documents for at least six years and must confirm or update key details on the Franchise Disclosure Register. The ACCC has recently acted against franchisors who missed these deadlines, so treat them as strict requirements.
Possibly. Agreements signed before 1 April 2025 follow the old Code, while those signed after use the new Code. This could mean keeping two documents, but the ACCC has said it will accept one updated document that meets the new Code.
Writing the Disclosure Document yourself can be problematic. The Franchising Code prescribes the form and content of the Disclosure Document, and errors or omissions can expose the franchisor to legal and financial risk.
The practical approach is:
This division of responsibilities helps ensure the document is both commercially accurate and legally compliant.
The Franchise Disclosure Register is a public Australian Government register of franchisors operating in Australia. It allows prospective franchisees to confirm basic information about a franchisor before entering into a Franchise Agreement.
Franchisors are generally required to create and maintain a profile on the Register and keep prescribed information up to date.
The Register now contains franchisor profile information only. Franchisors can no longer upload their Disclosure Document or a Key Facts Sheet, and documents that were previously uploaded are no longer publicly visible.
The ACCC is responsible for monitoring compliance with the Franchising Code, including obligations relating to the Register.
No. The FDD is used in the United States under the FTC Franchise Rule. Australia's Disclosure Document follows the Franchising Code of Conduct and has different contents, timing, and regulator. A US template will not meet Australian legal requirements.
No. The new Code removed that requirement. However, you still need to provide an Information Statement within 7 days after a potential franchisee applies or shows interest. Franchisors must keep Disclosure Documents and supporting documents for at least six years.
If you fail to disclose or misrepresent information, you could face infringement notices, court penalties, and ACCC enforcement. Most obligations under the new Code can result in civil penalties of up to 600 penalty units.
This page provides general information about the Franchising Code of Conduct and is not legal advice. For advice on your own situation, talk to a lawyer who knows franchising and read the ACCC's guidance on Disclosure Documents.
The Disclosure Document describes a system — so the system has to exist first. That is the part we build with you.
