Check that significant capital expenditure was disclosed and discussed before entry
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the disclosure document and any file note of the pre-entry discussion, list each item of expenditure the agreement or the disclosure requires during the term, and whether the document states why it is needed, the amount, timing and nature, the anticipated outcomes and benefits, and the expected risks. If the amount is not known, record whether the document says the expenditure is uncertain, what would trigger it, and any range. Do not decide that the expenditure is significant.
- What the lawyer must review
- The lawyer decides whether the expenditure is significant for this franchisee and whether it was discussed, including how it is likely to be recouped, before entry. The lawyer does not treat this as an assessment of a demand made after entry.
- 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 disclosure document and any file note of the pre-entry discussion, list each item of expenditure the agreement or the disclosure requires during the term, and whether the document states why it is needed, the amount, timing and nature, the anticipated outcomes and benefits, and the expected risks. If the amount is not known, record whether the document says the expenditure is uncertain, what would trigger it, and any range. Do not decide that the expenditure is significant. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Do not apply a dollar threshold. The page says the Code states none.
- An uncertain amount still needs a trigger and a range if that is all that is known.
- Do not use this table for a demand made after entry. That is a separate catalogue task.
- Confirm the agreement date against 1 November 2025 before treating the new obligation as applying.
Sources
- ACCC, disclosing significant capital expenditure · 2026-10-22
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