Build a franchisee's issue table from the disclosure document
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract Item 3 litigation, Item 4 bankruptcy, the fee items, territory, supplier restrictions and the Item 20 outlet counts into a table with page cites. Do not advise whether to buy the franchise.
- What the lawyer must review
- You decide what to tell the client. The cover statements in 16 C.F.R. § 436.3 include that no governmental agency has verified the disclosure document, and that there may be state franchising laws. Opinion 512 leaves the advice with you. Do not let the tool turn an Item 19 figure, or an oral earnings claim, into a conclusion that the outlet will make that money. Section 436.9(c) restricts financial performance representations that are not in Item 19.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.