Form · Franchising & Distribution
Pre-entry statements: receipt of the disclosure document and Code, and independent legal, business and accounting advice (Franchising Code ss 26 and 27)
The signed statements a franchisor must hold before entering into a franchise agreement: the franchisee’s statement that it has received, read and understood the disclosure document and the Code, and a statement for each of the three kinds of independent adviser.
- Kind
- Form. A form to complete, or a guide to completing an official one.
- Where it applies
- Australia
- AI use
- Green AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at
- 18 October 2026
- Status
- Maintained. Checked on 18 October 2026 against the 3 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use for every new franchise agreement, and the s 26 statement also for a renewal, extension or transfer. Franchisors issue it in the entry pack; franchisee lawyers use the adviser statement in Part C after giving advice. The s 27 statements are not needed for a renewal or an extension of term or scope.
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
Once the firm has settled this form, AI may fill party, site and document details into it for each deal; the franchisee and each adviser sign only statements that are true for them.
AI may
- Fill in the franchisee, guarantor, site, disclosure document version and dates from the deal file
- Check that the disclosure document date and version in the statement match the document actually given
- Track which of the four statements have been received for each prospective franchisee and flag any missing before settlement
AI must not
- Must not tick an option in Part B or Part C for the franchisee or an adviser; each choice is the signer’s
- Must not pre-sign, date or insert an adviser’s name as having given advice when the file does not show that advice was given
- Must not mark the s 27 statements as not needed unless the transaction is in fact a renewal or an extension
The lawyer checks
- All four statements (s 26 and the three s 27 statements) are held, signed and dated before the franchise agreement is signed
- The disclosure document identified is the current one and the 14-day period for considering documents under s 23 has run
- A franchisee lawyer signing Part C has in fact advised on the agreement or the business and is independent of the franchisor
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
- 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
- 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