Test a post-term restraint against the conditions for when it must not apply
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the restraint and the renewal clause, list each condition on the ACCC franchise-agreement page and the fact the file shows for it: whether an option to renew or extend existed, whether written notice requested substantially the same terms, whether the franchisee met the conditions, whether there was a serious breach or a misuse of intellectual property or a breach of confidence, whether the franchisor refused a valid request, and whether goodwill compensation was nominal, inadequate, or not permitted at all. Do not say the restraint is unenforceable.
- What the lawyer must review
- The lawyer decides whether every condition is met, whether the restraint still applies because the agreement ended early for the franchisee's breach, and which commencement date applies. The two ACCC pages do not use the same date.
- 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 restraint and the renewal clause, list each condition on the ACCC franchise-agreement page and the fact the file shows for it: whether an option to renew or extend existed, whether written notice requested substantially the same terms, whether the franchisee met the conditions, whether there was a serious breach or a misuse of intellectual property or a breach of confidence, whether the franchisor refused a valid request, and whether goodwill compensation was nominal, inadequate, or not permitted at all. Do not say the restraint is unenforceable. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Require every condition. One failure means the prohibition described on the page is not made out.
- Record the agreement date and flag the 1 April 2025 and 1 November 2025 statements. Do not resolve them in the table.
- A restraint can still apply where the agreement ended early for the franchisee's breach.
- Do not treat this table as the catalogue task that maps restraints and goodwill claims generally.
Sources
- ACCC, the franchise agreement: restraint of trade clauses · 2026-10-22
- ACCC, ending a franchise agreement: restraint when an agreement ends · 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.
The Code instrument at https://www.legislation.gov.au/F2024L01605/latest was not opened. Do not cite a clause number from it.
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