Letter · Franchising & Distribution

Request for franchisor consent to transfer, and the franchisor’s response within 42 days (Franchising Code ss 24, 48 and 49)

Paired letters for the sale of a franchised business: the franchisee’s written request for consent with the information the franchisor needs, and the franchisor’s response giving or refusing consent with reasons and conditions, timed against the 42-day deemed-consent rule.

Kind
Letter. A letter or email you adapt and send.
Where it applies
Australia
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
18 October 2026
Status
Maintained. Checked on 18 October 2026 against the 4 authorities it cites, for Australia.
Version
1
Source
Written for this library

When to use it

Use when a franchisee is selling its franchised business and the agreement is to be transferred to a buyer. The seller’s lawyer uses Part A; the franchisor’s lawyer uses Part B and the timing table. Where the buyer will sign a new franchise agreement instead, the s 23 entry steps also apply.

How AI may be used

AI may assemble the request from the sale contract and buyer information and calculate the 42-day and 14-day dates; the lawyer decides what information is reasonably required and, for the franchisor, whether refusal or conditions are reasonable.

AI may

  • Fill the request from the business sale contract, the buyer’s details and the agreement’s transfer clause
  • Calculate the 42-day deemed-consent date from the request date or the date the last further information was given, and the 14-day s 24(3) waiting period
  • List the agreement’s transfer conditions (training, fees, refurbishment, guarantees) and mark which are met on the documents provided

AI must not

  • Must not decide whether the buyer meets the franchisor’s selection criteria or can meet the financial obligations
  • Must not state reasons for refusal that are not supported by the file or that fall outside s 49(6) without the lawyer’s view that they are reasonable
  • Must not send the buyer’s financial and identity documents to a tool not approved for confidential material

The lawyer checks

  • The request is in writing and attaches all information the franchisor would reasonably require (s 48(2)), so the 42-day clock starts
  • Any refusal is in writing within 42 days, gives reasons, and is reasonable having regard to the s 49(6) circumstances
  • Consent is not given before 14 days after the s 24(2) documents are given to the buyer (s 24(3))
  • The buyer has been told of the s 52 cooling-off right and the sale contract deals with it

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

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