Record whether a prospective franchisee may opt out of the disclosure document
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the franchisee's history with this franchisor, record whether the prospective franchisee currently has, or recently had, the same or a substantially similar agreement with the same franchisor, and whether a written opt-out notice is in the file. Do not decide that the opt-out is effective.
- What the lawyer must review
- The lawyer decides whether the limited repeat-agreement test is met, and does not treat a cooling-off opt-out as an opt-out of the disclosure document.
- 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 | Do not begin AI assistance until the responsible lawyer has defined and confirmed its 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
- The earlier agreement must be with the same franchisor, and the same or substantially similar.
- A cooling-off waiver also asks whether the business is the same or substantially the same. Do not drop that condition into the disclosure opt-out, or drop it from the cooling-off waiver.
- The opt-out of the disclosure document, as the page describes it, is also an opt-out of receiving a copy of the Code.
- Do not process a cooling-off refund in this note.
Sources
- ACCC, opting out of the disclosure document · 2026-10-22
- ACCC, opting out of the cooling-off period · 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