AI prompt · Franchising & Distribution

Prompt template with guardrails: compare the disclosure document with the franchise agreement

Ready-to-use prompt for an approved AI tool that lines up disclosure document items against franchise agreement clauses and lists inconsistencies on fees, territory, term, restraints, capex and funds, with citations and a verification checklist.

Kind
AI prompt. A prompt to give an AI tool, with the checks that go with it.
Where it applies
Australia
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use when reviewing a franchise disclosure pack for either side, after confirming the client permits AI use and the tool is approved. The output is an issues list for a lawyer to verify, not advice.

How AI may be used

AI compares two document sets and lists inconsistencies with citations. The lawyer checks every row against both documents before relying on or sending it.

AI may

  • Line up each disclosure item with the corresponding agreement clauses, quoting both
  • List inconsistencies, gaps and terms that appear only in one document
  • Build a money table of fees, levies and costs with citations

AI must not

  • Must not advise whether to sign or assess commercial viability
  • Must not characterise a term as unfair or unenforceable
  • Must not be run on documents the client has not authorised for AI use, or in an unapproved tool

The lawyer checks

  • Every row checked against both documents
  • Missing documents (lease, manual, side letters) identified
  • Conclusions in the advice are the lawyer’s, not the tool’s

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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