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If you’ve set up a franchise in New Zealand, you know that there are a number of legal requirements you must comply with in 2025. Laws around franchising remain intricate, so it’s crucial to stay up-to-date with your obligations while ensuring your franchise remains competitive and legally compliant.
Keeping your franchise documents current not only fulfils your legal responsibilities but also demonstrates transparency and professionalism to prospective franchisees. Regular updates – especially with the recent amendments in the Franchising Code of Practice 2025 – are essential to maintain trust and avoid disputes.
One of your key obligations involves your Disclosure Document – a document provided to anyone considering entering into a franchise agreement. It discloses all the pertinent details about your franchise system.
It’s essentially your means of being completely transparent with potential franchisees before they commit to any decisions, helping them make informed choices backed by comprehensive data.
What Is In A Franchise Disclosure Document?
A Franchise Disclosure Document in New Zealand will typically outline key information about the franchise system, such as:
- Costs involved in starting and operating the franchise
- Details of current and former franchisees
- Information on any legal proceedings involving the franchise
- Updates on intellectual property rights and obligations – for instance, how your brand is protected (learn more about protecting intellectual property)
This comprehensive disclosure makes it much easier for potential franchisees to evaluate the opportunity and engage confidently with your business model.
As a franchisor in New Zealand, you are advised to update your Disclosure Document annually. It is highly recommended to engage a lawyer to assist with this process to ensure that your document accurately reflects all recent legal changes and includes every detail necessary for prospective buyers. For further guidance on maintaining and reviewing your franchise agreements, you may also find our Franchise Agreement resource invaluable.
What Are My Other Obligations?
Both franchisors and franchisees in New Zealand have a range of obligations aimed at fostering a successful business relationship. These include:
- Acting in good faith
- Complying with your Franchise Agreement
- Meeting financial commitments
- Engaging in the appropriate dispute resolution process
As a franchisor, your role extends to ensuring that all the documentation, including your Disclosure Document, is current. You also set the operational model and provide detailed guidance on how the franchise should be managed. Franchisees are expected to adhere strictly to this model, thereby ensuring a cohesive brand and business operation. For additional insights into your legal obligations as a franchisor, you can also check our Legal Essentials for Small Businesses guide.
In addition to the above, it is important that franchisees familiarise themselves with the Industry Regulations and guidelines, as these provide further clarity on how disputes may be resolved and how the relationship between franchisor and franchisee should be managed in accordance with the law.
Who Can Update My Disclosure Document?
It is prudent to consult a lawyer before amending your franchise documents. At Sprintlaw, our lawyers work closely with you to ensure that our services are tailored to your business’s specific needs. Our team will carefully review all changes in legislation – such as recent amendments effective in 2025 – and advise accordingly to protect your interests.
Our Franchise Disclosure Document Update package includes:
- Revising your Franchise Disclosure Document
- Phone consultations with a Sprintlaw lawyer who will advise you on the legal issues relevant to your documents
- A complimentary amendment to the final draft we provide you
- Access to our updated resources on business set-up guides and contract drafting services to ensure comprehensive legal compliance
Need Help?
Updating your Disclosure Document is quick and hassle-free with the right legal support. Our experienced lawyers can work closely with you and guide you through the process to ensure you don’t overlook any critical steps or details – especially now in 2025 when regulatory changes require extra attention.
If you would like a consultation on your options moving forward, you can reach us at 0800 002 184 or [email protected] for a free, no-obligations chat. Our dedicated team is here to ensure your franchise documents remain robust and compliant throughout your business journey.
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