Checklist · Franchising & Distribution
Significant capital expenditure in a franchise disclosure document
Checklist of the capital expenditure information the ACCC page says must be in the disclosure document for agreements covered by the rules in effect from 1 November 2025.
- 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 franchisor requires, or may require, a franchisee to incur significant capital expenditure during the term, and the disclosure document is being checked before an agreement is entered.
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 list expenditure items from the disclosure document and the operations manual against the page's headings, and the lawyer decides which items are significant and what the disclosure must say.
AI may
- List each capital item in the draft disclosure, with the amount, timing and nature stated there
- Mark which of the page's content headings have no entry for that item
- Note any item that appears in the agreement or manual but not in the disclosure document
AI must not
- Must not decide that an item is significant
- Must not write the explanation of how the franchisee is likely to recoup the expenditure
- Must not invent an amount, a range, or a benefit
The lawyer checks
- Each item the lawyer treats as significant has the content the page lists, or the page's alternative content where the detail is uncertain
- The expenditure has been discussed with the prospective franchisee before entry, including how they are likely to recoup it
- The disclosure document and the register are updated when the page says they must be
- A statement about future expenditure is supportable, because the page warns that a false claim about a future matter can mislead
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.
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All precedents for Franchising & Distribution · Tasks and AI use in this area