---
title: "Franchisor end-of-term notice: extend, new agreement, or neither (Franchising Code s 36)"
url: "https://ailawframework.com/precedents/franchising-and-distribution/end-of-term-notice"
type: "precedent"
site: "AI Law Framework"
id: "a34-end-of-term-notice"
area_id: "A34"
kind: "notice"
ai_level: "yellow"
version: 1
task_ids: ["A34-T1-R7", "A34-T1-R10"]
law_stated_as_at: "2026-10-18"
---

# 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…

Canonical page: https://ailawframework.com/precedents/franchising-and-distribution/end-of-term-notice  
Law stated as at: 2026-10-18

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

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.

## Key facts

- Kind: Notice. A formal notice to serve or publish.
- Practice area: [Franchising & Distribution](https://ailawframework.com/precedents/franchising-and-distribution.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 5 authorities it cites, for Australia.

## 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

- [Check early-exit and end-of-term compensation clauses](https://ailawframework.com/practice/franchising-and-distribution/check-early-exit-and-end-of-term-compensation-clauses.md)
- [Map termination and handback steps from the agreement and franchise rules](https://ailawframework.com/practice/franchising-and-distribution.md#A34-T1-R10)

## 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

## Authorities

- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 36 (end of term arrangements: content and timing of notice)](https://www.legislation.gov.au/F2024L01605/latest/text)
- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 35 (Subdivision does not apply to new vehicle dealership agreements)](https://www.legislation.gov.au/F2024L01605/latest/text)
- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) ss 32 and 33 (franchisee may request an updated disclosure document; franchisor must give it within 2 months)](https://www.legislation.gov.au/F2024L01605/latest/text)
- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 42 (restraint of trade clause if the agreement is not renewed or extended)](https://www.legislation.gov.au/F2024L01605/latest/text)
- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 18 (obligation to act in good faith)](https://www.legislation.gov.au/F2024L01605/latest/text)

## 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/end-of-term-notice 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.*