---
title: "Test a post-term restraint against the conditions for when it must not apply"
url: "https://ailawframework.com/practice/franchising-and-distribution/test-a-post-term-restraint-against-the-conditions-for-when-it-must-not-a"
type: "task"
site: "AI Law Framework"
id: "A34-OB20261022-4"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Test a post-term restraint against the conditions for when it must not apply

> 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…

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/test-a-post-term-restraint-against-the-conditions-for-when-it-must-not-a  
Last reviewed: 2026-10-22

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 | 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The responsible lawyer tests every restraint condition and does not pick a commencement date the Code text has not confirmed.

- What the AI does: 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 does: 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.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Require every condition. One failure means the prohibition described on the page is not made out.
2. Record the agreement date and flag the 1 April 2025 and 1 November 2025 statements. Do not resolve them in the table.
3. A restraint can still apply where the agreement ended early for the franchisee's breach.
4. Do not treat this table as the catalogue task that maps restraints and goodwill claims generally.

## Notes

- 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.

## Sources

- [ACCC, the franchise agreement: restraint of trade clauses](https://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct/the-franchise-agreement) (checked 2026-10-22)
- [ACCC, ending a franchise agreement: restraint when an agreement ends](https://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct/ending-a-franchise-agreement) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/franchising-and-distribution/test-a-post-term-restraint-against-the-conditions-for-when-it-must-not-a/united-states.md) | Yellow |

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