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.
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
- Pre-entry statements: receipt of the disclosure document and Code, and independent legal, business and accounting advice (Franchising Code ss 26 and 27)
- Information statement for prospective franchisees (ACCC): when and how to give it
- Prospective franchisee due diligence checklist and letter of advice
- Marketing and other specific purpose fund: annual statement, audit and franchisee vote (Franchising Code ss 31 and 61)
- Franchisor notice of breach and opportunity to remedy (s 55 Franchising Code)
- Request for franchisor consent to transfer, and the franchisor’s response within 42 days (Franchising Code ss 24, 48 and 49)
- 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
- Prompt template with guardrails: compare the disclosure document with the franchise agreement
All precedents for Franchising & Distribution · Tasks and AI use in this area