Checklist · Franchising & Distribution
Materially relevant facts to be told to franchisees
Checklist of the materially relevant facts and the 14-day written notice described on the ACCC information and document obligations page.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- Australia, Commonwealth
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the authority it cites, for Australia and Commonwealth.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a fact about the franchisor, its ownership, a proceeding, insolvency, intellectual property or financial details changes and franchisees or prospective franchisees may have to be told.
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 record the fact and the date the franchisor's file shows it was known, and count 14 days, and the lawyer decides whether it is a materially relevant fact and settles any notice.
AI may
- Enter the fact, the date it appears on the file, and whether it is already in the current disclosure document
- Count 14 days from the date the lawyer treats as awareness
- List prospective franchisees who have documents but have not yet signed
AI must not
- Must not decide that a fact is materially relevant
- Must not draft the notice to franchisees
- Must not add a category of fact that is not on the page
The lawyer checks
- The fact is one the page lists, or is in the code provision the lawyer has opened
- If it is not in the disclosure document, franchisees are told in writing within 14 days of awareness
- Prospective franchisees are told of new financial-detail facts as soon as possible, and are given updated documents before they sign
- The six-year record of the disclosure is kept
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
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- 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 cooling-off termination and refund
- Franchise disclosure document: Schedule 1 build sheet and verification register
- Franchise Disclosure Register profile and annual confirmation
- Pre-entry statements: receipt of the disclosure document and Code, and independent legal, business and accounting advice (Franchising Code ss 26 and 27)
- Franchisor end-of-term notice: extend, new agreement, or neither (Franchising Code s 36)
- Information statement for prospective franchisees (ACCC): when and how to give it
- Post-term restraint map under the Franchising Code
- Significant capital expenditure in a franchise disclosure document
- Does this distribution agreement meet the franchise agreement test
- Franchise lease and other agreement disclosure times
- 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)
- Responsible franchisor exposure note for a franchisee contravention
- Request for franchisor consent to transfer, and the franchisor’s response within 42 days (Franchising Code ss 24, 48 and 49)
- Compensation for early termination of a franchise
- Notice of dispute under the Franchising Code, with ADR referral and Ombudsman request
- Unfair contract terms review of a standard-form agreement
- 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