---
title: "Draft or review a franchise agreement against the Franchising Code"
url: "https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s/commonwealth"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-T1-R3-CTH"
practice_area: "Franchising & Distribution"
tier: "red"
lawyer_review: "required"
jurisdictions: ["CTH"]
last_reviewed: "2026-10-02"
---

# Draft or review a franchise agreement against the Franchising Code

> From the term sheet and the disclosure document, tabulate the territory, IP, operations, fee and reporting terms and flag one-sided terms against the Code.…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s/commonwealth  
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 | Red: Lawyer writes; AI may check, clarify or collect data |
| How AI is used | From the term sheet and the disclosure document, tabulate the territory, IP, operations, fee and reporting terms and flag one-sided terms against the Code. The tool writes no part of the franchise agreement: no draft, no first draft, no scaffold, no suggested clauses. Check the agreement the lawyer has written against the Code’s required and prohibited terms, the 14-day cooling-off period among them. |
| What the lawyer must review | Check the restraint ban on refused renewal without goodwill compensation (1 April 2025) Check s 43 exit compensation and s 44 return on investment (1 November 2025) Check unfair terms under ACL Part 2-3 Check the 14-day cooling-off period |
| Written for | Commonwealth |
| Applies to | [Draft or review a franchise agreement from the disclosure and the term sheet](https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s.md) |

## Checking plan

**Lawyer review required**

The responsible lawyer reviews the work against the instructions, sources and intended use.

- What the AI does: Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope.
- What the lawyer does: Set the scope, verify the evidence, resolve exceptions and approve the final output for its intended use.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Suggested checking approach based on the task guidance. Complete the assessment for the actual tool, information and jurisdiction.
- Why: The plan reflects the described work and review requirements. Policy colours are not used to determine permission or checking.

## Checks the lawyer makes

1. Open each relied-on authority independently. Confirm its existence, current status, proposition and any quotation or pinpoint reference.
2. Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
3. Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
4. Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
5. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
6. Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

## Notes

- Confirm the required checking with the responsible lawyer before work starts. The checking approach does not establish permission to use AI.

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