Read Item 17 on cause, no cause, and curable defaults
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract the Item 17 rows for termination by the franchisor without cause, termination with cause, curable defaults, and non-curable defaults, and the contract sections cited. Do not decide whether a default has been cured.
- What the lawyer must review
- 16 CFR 436.5(q) requires the franchise-relationship table to disclose termination by the franchisor without cause, termination by the franchisor with cause, "cause" defined as curable defaults, and "cause" defined as non-curable defaults, each cross-referenced to the agreement. If an item is not applicable, the franchisor states "Not Applicable." A policy offered where the agreement is silent is footnoted, including whether the policy is subject to change. The opened rule requires that disclosure. It does not create a statutory period in which a default must be remedied. The lawyer reads the attached agreement for any cure period and applies it to the facts. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave that review with the lawyer.
- 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
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- 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.
Related tasks
Draft or review a franchise disclosure document against the prescribed headingsCheck the franchisor's disclosure and any registration the jurisdiction requiresDraft or review a franchise agreement from the disclosure and the term sheetBuild a franchisee due-diligence issues list from the disclosure pack