Getting an AI-drafted franchise agreement checked

A franchise agreement produced with an AI drafting tool imports the US framework: references to a 'franchise disclosure document', 'FTC Franchise Rule' compliance, and fee structures that assume US law. England and Wales has no franchise statute; the agreement is governed by contract, trade mark and competition law and by the standards the industry body sets, and it has to work under those. Whichever side instructs me, I go through the agreement against English law and the format being franchised, and send back a tracked mark-up, a clean copy and a written explanation of what changed and why. The fee is £495, fixed, with delivery in three working days.

Who this is for

Business owners in England and Wales preparing to franchise a format, from a food concept to a service business, using an agreement drafted with an AI tool, and prospective franchisees who have been sent such an agreement and want it checked before they commit.

What the review checks in an AI-drafted franchise agreement

The grant, the territory and the term

The review checks what the franchisee is granted (the right to operate the format under the marks and system), whether the territory is exclusive and what the franchisor reserves (online sales, national accounts, other channels), the initial term and the renewal rights and conditions, and the position on relocation and additional outlets. An AI draft grants 'the franchise' without defining the system it refers to, and the review defines it by reference to the manual and the marks.

The trade mark and system licence

The franchisor licenses its marks and know-how, and a trade mark licence is not effective unless in writing and signed under section 28 of the Trade Marks Act 1994, so the review checks that the marks are identified and registered or applied for, that the licence is limited to the franchised business and the territory, that quality control and approval rights are stated, and that improvements the franchisee makes belong to the franchisor, with know-how protected as confidential information and the manual protected under the Copyright, Designs and Patents Act 1988.

Fees, pricing and competition law

The review checks the initial fee, the continuing fee and its base, marketing fund contributions and how the fund is accounted for, and compulsory purchases from the franchisor or nominated suppliers. Resale price maintenance and certain territorial restrictions are prohibited under the Competition Act 1998, with a safe harbour for vertical agreements under the Competition Act 1998 (Vertical Agreements Block Exemption) Order 2022, and the review removes fixed or minimum resale prices and drafts recommended prices and supplier obligations that the exemption permits.

The manual, control and the franchisee's business

The review checks that the operations manual binds the franchisee through the agreement and may be updated, that the franchisor's control is exercised over standards rather than over the franchisee's staff, so that the franchisee remains an independent business and employer, and that the franchisee's obligations on premises, fit-out, opening hours, training, reporting, insurance and compliance with law are stated with the consequences of breach.

Post-term restrictions and confidentiality

A restriction on the franchisee competing after the agreement ends is enforceable only if it is no wider than needed to protect the franchisor's legitimate interest in its know-how and network, and the review drafts the restriction by activity, territory and period with that test in mind, alongside a confidentiality obligation, an obligation to de-brand and return materials, and, where agreed, an option for the franchisor to buy the business or take over the lease.

Termination, sale and the boilerplate

The review checks the grounds for termination (breach with notice and a cure period, insolvency, failure to open or to meet minimum performance), the franchisor's consent to a sale of the franchised business and its right of first refusal, death and incapacity of an individual franchisee, and the closing provisions, where the US disclosure references and the US state's law give way to English law and the courts of England and Wales, and, where the franchisee is an individual, a guarantee by the individual for a franchisee company signed as the Statute of Frauds 1677 requires.

What it costs

Review of an AI-drafted contract, £495. One contract, returned as a marked-up Word document with my amendments as tracked changes, a clean version with the changes accepted, and a written explanation of the changes. Three working days from payment.

Buying online forms the engagement on payment. The scope is what the review of an ai-drafted contract page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• Your own Word document returned with every amendment I consider necessary shown as a tracked change, so you can see exactly what I changed and accept or reject each one
• A clean version with every change accepted, ready to send
• Corrections to anything that is wrong as a matter of English law, unenforceable as drafted, or internally inconsistent
• Missing provisions added where the document has left a gap that matters: usually liability, termination, payment, intellectual property or data
• Comments in the margin where a clause is a commercial choice rather than a legal one, so the decision stays yours
• A written explanation of what I have changed and why, by email or as an attachment if it is lengthy, with anything you should think about before sending it out
• Follow-up questions on the mark-up answered by email, included

What is not included

• A full rewrite. This is a review and amendment of your document, not a replacement for it. If the draft is structurally unsuitable for the deal, I will say so and quote separately for drafting it properly
• A second round of amendments after you have changed the document again, which I can quote for
• Negotiating with the other side
• Advice on the law of any jurisdiction other than England and Wales
• Tax, accounting or regulatory advice
• Reviewing a document the other side drafted, which is the contract review service, at the same price

Questions I am often asked

Do we need a franchise disclosure document in the UK?

Not by statute. There is no franchise disclosure law in England and Wales, but franchisors who are members of the industry body follow its code on pre-contract disclosure, and a franchisee's remedies for misrepresentation apply to what is said before signing. The review removes the US disclosure references and addresses pre-contract statements.

Can we require franchisees to charge our menu prices?

You can recommend prices and set maximum prices, but fixing or setting minimum resale prices is prohibited under competition law. The review drafts the pricing clause within the vertical agreements exemption.

The draft bans the franchisee from any competing business anywhere for five years. Will that hold?

Unlikely. Post-term restrictions must be no wider than needed to protect the franchisor's know-how and network, in activity, area and time. The review drafts a restriction that a court is likely to enforce.

Related guidance and services

• Review of an AI-drafted contract, £495, the service this page describes
• Contract review, £495
• Reviewing a franchise agreement before you sign
• NDA for a franchise enquiry

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.