Notice · Franchising & Distribution

Franchisor end-of-term notice: extend, new agreement, or neither (Franchising Code s 36)

Written notice a franchisor must give at least 6 months before the term ends (1 month for a term under 6 months) saying whether it will extend the agreement, offer a new one, or do neither, with the s 32 disclosure statement and a diary of the end-of-term steps.

Kind
Notice. A formal notice to serve or publish.
Where it applies
Australia
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
18 October 2026
Status
Maintained. Checked on 18 October 2026 against the 5 authorities it cites, for Australia.
Version
1
Source
Written for this library

When to use it

Use for every franchise agreement approaching expiry, other than a new vehicle dealership agreement. Diarise it from the expiry date at signing. Franchisee lawyers can use the checklist to test a notice that has been received or is late.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

AI may calculate the notice date from the agreement, fill the notice and list the end-of-term clauses that follow from the franchisor’s choice; the franchisor and its lawyer make the decision and check the consequences for restraint and goodwill before it is sent.

AI may

  • Calculate the latest date for the notice from the commencement date, term and any option periods in the agreement, and flag a date already passed
  • Fill the notice from the decision recorded by the franchisor, with the correct statement for an extension
  • Extract the agreement’s option, renewal conditions, restraint, goodwill and handback clauses into the end-of-term table

AI must not

  • Must not choose between extending, offering a new agreement or neither; that is the franchisor’s decision on advice
  • Must not state reasons for not extending that the franchisor has not given and that are not supported by the file
  • Must not tell a franchisee that a post-term restraint is enforceable without the lawyer’s s 42 analysis

The lawyer checks

  • The term end date, any exercised options and the s 36(2) deadline are calculated from the signed agreement and variations
  • If the franchisor will extend, the notice says the franchisee may request a disclosure document under s 32
  • If the franchisor will not extend, the s 42 conditions and the goodwill position have been checked before any restraint is asserted
  • The decision and the notice are consistent with good faith (s 18), including how the franchisee’s option and investment are treated

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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