Draft or review a franchise agreement from the disclosure and the term sheet
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Draft the territory, IP, operations, fee and reporting clauses to the lawyer's clause-by-clause instructions, working from the term sheet, the disclosure document and the precedent the lawyer nominates. On a review, mark the franchisor's text against the playbook and list one-sided restraint, transfer, termination and marketing-fund terms.
- What the lawyer must review
- The lawyer settles every clause as their own: that it matches the term sheet and does not contradict the disclosure document, and that the franchising code's required and prohibited terms (cooling off, dispute resolution, transfer, termination, no recovery of the franchisor's preparation costs) and the unfair contract terms position are right before the agreement is exchanged. A term the playbook is silent on is decided by the lawyer, not left as drafted.
- Written for / version
- Cth
Open a jurisdiction version of this task to see which instruments apply.
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.