Check a renewal for a post-signing cooling-off the FTC rule does not create
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- On a renewal or extension, look for a cancellation or cooling-off clause and record its words and any day count in the contract. State that the opened text of Part 436 creates no post-signing cooling-off. Do not invent a federal day count.
- What the lawyer must review
- The opened text of 16 CFR Part 436 requires pre-sale disclosure when there is a sale, and it times that disclosure before signing or payment (16 CFR 436.2). It does not give the franchisee a period after signing a renewal in which to walk away. 16 CFR 436.1(t) decides whether the renewal is a sale at all. 16 CFR 436.10(b) says a state or local franchise law that gives equal or greater protection is not preempted, so a state statute may add a cancellation right the federal rule does not. No state statute was opened. The lawyer reads the contract clause and the law of the place where the franchise is located. ABA Model Rules 1.1 and 5.3 and Formal Opinion 512 leave that reading with the lawyer.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its 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.
- 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