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.
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
- Pre-entry statements: receipt of the disclosure document and Code, and independent legal, business and accounting advice (Franchising Code ss 26 and 27)
- 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)
- 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