Assess a franchisor’s capital expenditure demand against the disclosure and the agreement
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the franchisor’s refit or upgrade notice, the disclosure document given to the franchisee and the agreement, list the expenditure demanded beside what was disclosed as significant capital expenditure and what the agreement permits, with references.
- What the lawyer must review
- The lawyer decides whether the demand was adequately disclosed and is permitted, advises the franchisee on its options (including the Code’s complaint procedure and ADR), and checks the figures against the franchisee’s own quotes.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the franchisor’s refit or upgrade notice, the disclosure document given to the franchisee and the agreement, list the expenditure demanded beside what was disclosed as significant capital expenditure and what the agreement permits, with references. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm whether the 2025 Code applies to this agreement (entered, transferred, renewed or extended on or after 1 April 2025) and whether a November 2025 provision is engaged, before any template is used.
- Check the disclosure document version actually given to this franchisee, and when.
- Check each demanded item against the agreement clause relied on.
- Confirm the franchisee’s instructions before any complaint notice is sent.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Significant capital expenditure in a franchise disclosure document | Checklist | AI use Yellow | Checklist of the capital expenditure information the ACCC page says must be in the disclosure document for agreements covered by the rules in effect from 1 November 2025. |
Signed-in accounts can read the full text of each one. All precedents.
Sources
- ACCC, Franchising Code of Conduct · 2026-10-18
- ASBFEO, Franchising Code of Conduct and alternative dispute resolution · 2026-10-18
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.
Related tasks
Draft or review a franchise disclosure document against the prescribed headingsCheck the franchisor's disclosure and any registration the jurisdiction requiresDraft or review a franchise agreement from the disclosure and the term sheetBuild a franchisee due-diligence issues list from the disclosure pack