---
title: "Franchise cooling-off termination and refund"
url: "https://ailawframework.com/precedents/franchising-and-distribution/cooling-off-and-refund"
type: "precedent"
site: "AI Law Framework"
id: "a34-cooling-off-and-refund"
area_id: "A34"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A34-E20261018-3"]
law_stated_as_at: "2026-10-22"
---

# Franchise cooling-off termination and refund

> Checklist of the cooling-off periods and the 14-day refund on the ACCC page about ending a franchise agreement, including the opt-out from 1 November 2025.

Canonical page: https://ailawframework.com/precedents/franchising-and-distribution/cooling-off-and-refund  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Franchising & Distribution](https://ailawframework.com/precedents/franchising-and-distribution.md)
- Jurisdictions: Australia, Commonwealth
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the authority it cites, for Australia and Commonwealth.

## When to use it

Use when a franchisee may terminate a franchise agreement during a cooling-off period, or when a franchisor has received a written termination in that period and must deal with money paid.

## Used for these tasks

- [Process a cooling-off termination and the refund](https://ailawframework.com/practice/franchising-and-distribution/process-a-cooling-off-termination-and-the-refund.md)

## How AI may be used

AI may calculate the 14-day dates from the agreement date and from any written termination on the file, and the lawyer decides whether the period is open and what, if anything, may be retained.

**AI may:**

- Enter the date the agreement was entered, the date the new franchisee took possession, and the date of any written termination
- Count 14 days from the date the lawyer nominates and show the working
- List payments to the franchisor and any expenses the agreement says may be retained

**AI must not:**

- Must not draft the termination notice or an opt-out notice
- Must not decide that an expense is reasonable
- Must not decide that the franchisee can opt out

**The lawyer checks:**

- The agreement is one to which this cooling-off rule applies, under the code in force for that agreement
- For a transfer, the earlier of the two dates on the page is used
- Any amount retained is a reasonable expense of the termination and the expense or its method of calculation is in the agreement
- An opt-out is in writing and meets both conditions on the page

## Authorities

- [ACCC, Ending a franchise agreement, cooling-off and refund](https://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct/ending-a-franchise-agreement)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/franchising-and-distribution/cooling-off-and-refund and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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