---
title: "Pre-entry statements: receipt of the disclosure document and Code, and independent legal, business and accounting advice (Franchising Code ss 26 and 27)"
url: "https://ailawframework.com/precedents/franchising-and-distribution/pre-entry-statements-on-disclosure-and-independent-advice"
type: "precedent"
site: "AI Law Framework"
id: "a34-pre-entry-statements-on-disclosure-and-independent-advice"
area_id: "A34"
kind: "form"
ai_level: "green"
version: 1
task_ids: ["A34-T1-R3"]
law_stated_as_at: "2026-10-18"
---

# 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…

Canonical page: https://ailawframework.com/precedents/franchising-and-distribution/pre-entry-statements-on-disclosure-and-independent-advice  
Law stated as at: 2026-10-18

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

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.

## Key facts

- Kind: Form. A form to complete, or a guide to completing an official one.
- Practice area: [Franchising & Distribution](https://ailawframework.com/precedents/franchising-and-distribution.md)
- Jurisdictions: Australia
- AI level: Green. AI can do most of the drafting. A lawyer still reviews the result.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 3 authorities it cites, for Australia.

## 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

- [Draft or review a franchise agreement from the disclosure and the term sheet](https://ailawframework.com/practice/franchising-and-distribution/draft-or-review-a-franchise-agreement-from-the-disclosure-and-the-term-s.md)

## 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

## Authorities

- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 26 (statements with respect to disclosure document and this Code)](https://www.legislation.gov.au/F2024L01605/latest/text)
- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 27 (statements with respect to independent advice: legal adviser, business adviser, accountant; exceptions for renewal and extension)](https://www.legislation.gov.au/F2024L01605/latest/text)
- [Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (Cth) s 37 (franchisor must keep things given in writing by a franchisee for at least 6 years)](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/pre-entry-statements-on-disclosure-and-independent-advice 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.*