---
title: "Draft or review a franchise agreement from the disclosure and the term sheet"
url: "https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s"
type: "task"
site: "AI Law Framework"
id: "A34-T1-R3"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-02"
---

# Draft or review a franchise agreement from the disclosure and the term sheet

> 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.…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s  
Last reviewed: 2026-10-02

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Franchising & Distribution](https://ailawframework.com/practice/franchising-and-distribution.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

- What the AI does: Produce first-draft territory, IP, operations, fee and reporting clauses, and flag one-sided terms against the playbook.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [Commonwealth](https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s/commonwealth.md) | Red |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*