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.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Franchising & Distribution
- Franchise disclosure document: Schedule 1 build sheet and verification register
- Information statement for prospective franchisees (ACCC): when and how to give it
- Prospective franchisee due diligence checklist and letter of advice
- Franchisor notice of breach and opportunity to remedy (s 55 Franchising Code)
- Notice of dispute under the Franchising Code, with ADR referral and Ombudsman request
- Franchise agreement clause: franchisor-mandated AI tools, customer data and AI-generated marketing
All precedents for Franchising & Distribution · Tasks and AI use in this area