---
title: "Apply competence and confidentiality rules in a franchise dispute"
url: "https://ailawframework.com/practice/franchising-and-distribution/apply-ethical-ai-rules-in-franchise-disputes/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A34-B8-2-US"
practice_area: "Franchising & Distribution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Apply competence and confidentiality rules in a franchise dispute

> List the dispute-resolution clause at Item 17 row u, whether the file contains an arbitration or mediation clause, and which prompts would include client facts. Write no filing and no settlement paper.

Canonical page: https://ailawframework.com/practice/franchising-and-distribution/apply-ethical-ai-rules-in-franchise-disputes/united-states  
Last reviewed: 2026-10-22

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

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Franchising & Distribution](https://ailawframework.com/practice/franchising-and-distribution.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | List the dispute-resolution clause at Item 17 row u, whether the file contains an arbitration or mediation clause, and which prompts would include client facts. Write no filing and no settlement paper. |
| What the lawyer must review | Formal Opinion 512, Model Rule 1.1, and Model Rule 1.6 govern a lawyer's use of a generative tool. Item 17 row u of 16 C.F.R. section 436.5 is the disclosure of dispute resolution by arbitration or mediation. The tool extracts that row. The lawyer decides what may be put into a tool and what may be filed. A filing is written by the lawyer. |
| Written for | United States |
| Applies to | [Apply ethical AI rules in franchise disputes](https://ailawframework.com/practice/franchising-and-distribution/apply-ethical-ai-rules-in-franchise-disputes.md) |

## Checking plan

- What the AI does: List the dispute-resolution clause at Item 17 row u, whether the file contains an arbitration or mediation clause, and which prompts would include client facts. Write no filing and no settlement paper.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not put the franchisee's confidential operating figures into a public tool.
- An Item 17 summary is not the dispute clause. Read the agreement.

## Sources

- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (checked 2026-10-22)
- [ABA Model Rule 1.6, Confidentiality of Information](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_6_confidentiality_of_information/) (checked 2026-10-22)
- [16 C.F.R. Part 436, Franchise Rule (eCFR)](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*