Checklist · Franchising & Distribution
Post-term restraint map under the Franchising Code
Map of a restraint of trade clause against sections 42 and 67 of the Franchising Code, which limit a restraint that would apply when a franchise agreement is not renewed or extended.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- 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 2 authorities it cites, for Commonwealth.
- Version
- 1
- Source
- Written for this library
When to use it
Use when reading a post-term restraint in a franchise agreement that has expired or is about to expire without renewal or extension, before anyone relies on the clause or agrees to delete it.
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
The tool sets the clause beside each paragraph of section 42 and records the facts the lawyer supplies, and the lawyer decides whether the section applies.
AI may
- Quote the restraint from the agreement into the map, including a document the agreement incorporates or attaches.
- Mark each of paragraphs (a) to (h) of section 42 as met, not met, or not checked, from instructions.
- State that section 67 says a franchisor must not rely on a restraint that would apply in the circumstances mentioned in section 42.
AI must not
- Do not decide that the restraint has no effect, or that there was a serious breach.
- Do not value goodwill or call compensation nominal.
- Do not draft a new restraint.
The lawyer checks
- Section 42 is about entering an agreement that includes the restraint. Section 67 is about relying on it. Both were read. Each states a civil penalty of 600 penalty units.
- Paragraph (h) has two branches. Record which one, if either, is said to apply.
- General law on restraints was not opened and is not applied in this map.
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 available after you log in. It is free. When you log 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.
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All precedents for Franchising & Distribution · Tasks and AI use in this area