Key Facts Sheet

What it means

The Key Facts Sheet is a new requirement designed to make the most critical information easy to find, because full disclosure documents are long and dense. It draws key points from the disclosure document into a concise, prescribed format, covering matters such as the term of the agreement, whether there is a right to renew, the costs involved, whether the territory is exclusive, whether a restraint of trade applies, and where to get help.

It does not replace the disclosure document; it sits on top of it. A franchisor must provide the Key Facts Sheet together with the disclosure document, a copy of the Code and the proposed agreement, and the 14-day consideration period applies before signing. Because the sheet is generated in a standard form, it also makes it easier to compare different franchise opportunities.

The Key Facts Sheet is generated in the format required by the Code and lodged as part of a franchisor's obligations, including on the Franchise Disclosure Register. It is intended to flag the issues that most commonly catch franchisees out, prompting them to read the detail in the full disclosure document and seek advice before committing.

In practice

A prospective franchisee should read the Key Facts Sheet first as a map, then dig into the full disclosure document and franchise agreement for the detail behind each point. If something in the Key Facts Sheet is concerning, such as no renewal right, a broad restraint, or a non-exclusive territory, that signals where to focus due diligence and legal review.

The sheet is also a comparison tool. Because every compliant franchisor produces one in the same format, a buyer weighing two or three systems can line up the headline facts side by side. It should never be the only thing relied on, but it is an efficient starting point that the Code now guarantees every prospective franchisee receives.

A real example

Comparing two coffee franchises, a buyer reads both Key Facts Sheets. One shows a five-year term with two renewal options and an exclusive territory; the other shows a three-year term, no guaranteed renewal, and a non-exclusive territory with a 12-month post-term restraint. The contrast steers the buyer to scrutinise the second system's disclosure document more closely before deciding.

Key Facts Sheet — FAQs